The concept of real estate is a far removed entity from 10 or 20 years ago. While we've seen the prices of rental properties gradually increase, it's unsurprising that people are looking to claw back some of their finances by making wise investments. Real estate is one of the most popular, but when it comes to choosing the ideal real estate investment, it can prove to be quite difficult. What are the things that you need to know? In a general sense, you can break it down into two different criteria. Firstly, there are big picture location criteria, and then small-scale location criteria. So let's have a look at these in more detail…
Big Picture Location Criteria
On a large scale, the bigger issues can affect your investment. The big picture issues are threefold: job and economics, the growth of the population, as well as the rent/price ratio. When it comes to choosing the area, you've got to look at the number of jobs, the salaries, what sorts of jobs there are, but also the industries involved, such as factories. Because if you're choosing a more rural area, this is going to have a major impact on your ability to make a profit from the real estate investment. At this stage, you can do a bit of research yourself, and go on sites like https://www.bls.gov/ which will give you statistics and trends such as unemployment rates and job trends based on the region.
When it comes to population growth, you can see a trend where people move to regions where there are better prospects. It's not just in terms of jobs though; there are other criteria, like natural attractions, politics, weather and so on. The price/rent ratio gives you an idea of how much you can rent your property out for.
Small-Scale Location Criteria
Small-scale location criteria relate to the tastes and preferences of the people that buy or rent properties. There are always useful pieces of advice that real estate investment agencies can give you, and companies like https://www.nria.net/ spaced in a specific area can always give you a sneak preview of what life is like there, and this is what will link into the small-scale location criteria. There are components like convenience, in terms of how far away the property is from amenities like shops and jobs, but there are also convenience aspects like walkability and public transport.
It's also worth considering the local laws as well as taxes and infrastructure. Depending on the state you choose, there are different regulations in terms of rent controls, taxes, as well as eviction laws. When picking the right real estate investment, location is everything. And with these two different factors, you find yourself coming up with an infinite amount of questions. Ultimately you need to make a good return on your investment so your portfolio can expand, but real estate is such a fickle beast, however, it's still one of the more consistent investments. Choosing the right real estate investment is a very fine art.
About the author
Matt Angerer is the Founder and President of VerticalRent. He enjoys writing on a variety of topics that help Landlords, Property Managers, and Renters across America. He is particularly interested in helping renters understand their local marketplace, pick the best places to live, and find an awesome roommate. Since 2011, VerticalRent has grown to service over 100,000 landlords and renters across America.