Finding the Right Property to Buy

                                                   

Even though the recent recession has led to an unavoidable decline in the real estate market, we can always plan for the next recovery which always succeeds a down turn.

Long term statistics reveal the total value of all property in the United States are now increasing overall, which is nice to know, but doesn’t help us much because not all properties are increasing at the same rate. Some properties are staying the same or even decreasing in value.  So when attempting to find the right property to invest in, the trick is to look for the properties that are increasing in value and preferably increasing at a faster rate than the average home in the neighborhood.

To increase your chances of finding such a property, let’s look at some features that tend to add desire and demand.  Learning how to recognize properties with features that are desirable will help you choose the properties are likely to increase in value.

Buy in the Path of Progress

As a town or city’s population starts to grow, it is not too difficult to see where the areas of progress are.  Generally, areas of development tend to move outward from the main core of a city or town.  If you go out into your neighborhood what do you see? Is there land being cleared for new subdivisions? Are the roads being widened? Are there new shopping centers going up? This is the path of progress. Land in this area and the area immediately beyond is growing in value faster than land in other areas not developed or already over-developed. There are other ways to find the path of progress in an area.  Check the local newspaper for clues- When builders develop in an area they place fancy, colorful ads to entice perspective buyers.  Locseveral of these areas on a map will also help you find the path of progress.

Notice where companies are building their factories or manufacturing plants.  Although many factories seem to be located out in the “middle of nowhere”, these companies are also are interested in bargains and tend to build where land is inexpensive.  But inexpensive does not mean worthless. Factory workers need places to eat, relax after work and shop on the way to and from their job and it’s not long before the land in these areas sprout up restaurants, cocktail lounges and a variety of retail shops. 

Vacant land is not the only type of property to look for in the path of progress. There are many other property types such as houses, condominiums, apartments, office buildings and various commercial buildings that can also be good investment s and the kind of property you choose depends just as much on your investment objectives as the area you invest in.

Buy on or near the Water

There is something alluring and captivating about real estate located on water.  People love to be near it, swim in it, boat in it or even just look at it. If you are looking in an area that has water,  buy as close to it as you can and you can expect a better than average return.  Many cities are now spending money to revitalize river ways and canals, so opportunities to invest in these areas are increasing. To avoid the risk of property damage caused by flooding, make sure your property is located in a 100 to 500 year flood plain elevation. Have the levels checked before you buy.

Buy on a Hillside or Hill top

People love to live on Hill sides and hill tops.  It might be because they like the view or maybe they just like to be “king of the hill”.  Whatever the reason, people are willing to pay more for hillside property than flat land or bottom land. The price of hillside or hilltop lots average as much as 50% more than the other types in the same development.  Be aware of any steep areas of the site that may be prone to erosion before you build as the washing away of dirt under a foundation can cause problems that are difficult and costly to treat.

The old maxim, the three most important things in real estate is, location, location, location really does apply when finding and choosing the right property.  Although it is not the only thing to consider, finding real estate with one or more of these features could mean greatly increasing your chances of making a very profitable investment decision.