These factors mean you should invest now
You’ve dreamed of becoming a real estate investor for years. Or you might living the dream right now. In either case, determining when and where your hard-earned money should be invested isn’t always a straightforward process.
Maybe you want to become a landlord and create passive income for yourself that pays well into your retirement. Or perhaps you want to buy and sell properties full-time.
In either scenario, you’ll benefit greatly from studying these signs of worthwhile property investment:
1. Major transportation nearby
Try to get a valuation on a property that’s located near an airport, major highways, or railways—not close enough to be disturbed by traffic or noise, of course. You’ll likely get a high valuation, regardless of nearby market trends. Such infrastructure is constructed through investing millions of dollars, and neighboring commercial and residential properties often increase in value as a result.
Angela Yaun, a panel member of Forbes Real Estate Council, shares her perspective. “With all the highway infrastructure throughout Texas, I have never seen a property in close proximity of a highway or port take a nosedive in value,” she said. So if your investment property of interest has major transportation nearby, take it as a green light to move forward with an offer.
2. Proximity to gourmet groceries
You might’ve guessed that high-end chains like Starbucks and Whole Foods typically spend boatloads of cash researching the kinds of neighborhoods where residents have enough disposable income to support their business.
Besides transportation, this is another helpful sign for you. The presence of gourmet groceries or take-out options in the area correlates with property investment desirability. Consider this: if you can buy a cup of top dollar coffee and shop for organic potatoes in a five-block radius, things are looking good.
Justin Cohen, the chief marketing officer of Pangea Properties, explained this in an interview with Realtor.com. “You can’t just look at the numbers,” he emphasized. “You’ve got to really look at the neighborhood and understand what’s happening there.”
3. A walkable neighborhood
This factor is related to the first two signs of property investment. As a real estate investor, you want to look for a walkable neighborhood. This means that the tenants should be able to walk from their homes to parks, retail stores, daycares, a dentist’s office, salons, the metro, or other amenities. (You get the idea!)
Even if you’re selling the property to a homebuyer (as opposed to renting it out), the walkability factor would attract a lot of prospects.
4. It’s the right time to invest
Feel that chill in the air? Mmmhmm, it’s time to find a deal! The investment market is usually at its peak during the winter. There’s less competition at this time of the year, thanks to Christmas and the New Year. Most people are busy celebrating with their friends and family, or at least laying low over the holidays, so fewer buyers are competing for properties.
Besides, it’s very difficult for families with children to move homes during the winter. (Especially those with young students, as the school year is at a midway point.) You’ll probably be able to get concessions from sellers around this time as well, which gives you an advantage during negotiations.
Since the inventory runs high during this time, chances are you’ll get a good deal if you have the mortgage pre-approval letter ready.
Winter, not your seasonal jam? Maybe you’d prefer to cuddle up and watch a good movie rather than scroll through listings. We get it. In that case, experts suggest that the second-best time for property investment is spring.
There are so many buildings, homes, condos to purchase or rent out, even in a highly competitive market. But finding the right investment property with a killer return is the tough part. Still, there’s no need to give up yet!
Use the above signs as a checklist the next time you go property hunting, and you’ll end up with a deal that helps you build your family’s wealth.