Aug 17, 2009
U.S. Real Estate Markets With Consistent Price Appreciation
Buying home, condo or any other real estate in a market that is protected from a bursting bubble is every investor’s dream. Knowing where to look for these bubble-proof markets and how to identify them is crucial.
There are some important factors that investors should consider when searching for stable investments such as single-family homes, condos or any other type of real estate. Some of these factors include a fast growing population (which positively impacts the demand for housing), a solid and diverse economy (which impacts employment rates and subsequent demand for housing), rising incomes (which impacts buyers’ ability to purchase real estate), a developing infrastructure (which contributes to the appeal of a city or community), and restrictions on future real estate development (which limits future supply of real estate). Investing in real estate within communities that meet these criteria may prove to be more profitable than communities that are missing one or more of these factors.
A recent report by Business 2.0 Magazine identified U.S. cities that have consistently demonstrated price appreciation in the real estate market. The October 2006 issue of the Magazine identified the top 5 real estate markets that demonstrated an upward price trend over a long period time. The top-ranking cities were:
1. San Francisco, California
2. Los Angeles, California
3. Seattle, Washington
4. Boston, Massachusetts
5. New York City, New York
San Francisco topped the list with an average annual home price appreciation of 4.2% from 1949 to 2006. In contrast, the national average was 2.3%. Strong restrictions on real estate development and a limited geography helped push San Francisco to the top slot.
Los Angeles ranked second in the report. The average annual home price appreciation in Los Angeles was 3.7% from 1949 to 2006. Reductions in available land and increasing restrictions on further development helped pushed Los Angeles to the number 2 slot.
Home prices in Seattle, which was third on the list, demonstrated an average appreciation rate of 3.2% from 1949 to 2006. While Seattle made the top 5 list, recent easing of building restrictions may cause Seattle to fall out of the top 5 over the next few years.
Boston was fourth in the rankings. The city has seen annual home prices appreciate by 3% over the period from 1949 to 2006. A strong increase in per capita income contributed to Boston’s high ranking.
New York City follows close behind with an average annual home price appreciation of 3% from 1949 to 2006. A limited geography, large population, and finite number of properties contributed to New York’s high ranking.
While there is no guarantee that any of the real estate markets listed previously are truly “bubble proof,” the factors described above may help investors find the profitable markets and avoid “bubble” markets. Since the real estate market is constantly changing, be sure to seek out the services of a skillful real estate agent to help you navigate your next real estate purchase.
Watch the video related to real estate investment
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Help answer the question about real estate investment
How to be Real Estate Investment Group and how can I get Started?
I want privately held investment and real estate companies engaged in the acquisition, development and management of select real estate projects and selected business opportunities. I want to developed over 4,000,000 square feet of urban real estate including office, hotel, retail, town-home and commercial parking properties. How can I get started? Thanks
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Scripps Ranch Real Estate
Russ Whitney has a great coaching program you may want to take a look at.
Good Luck
Sheldon Moylan of Dominion Lending Centres
Seller’s pay the agent’s commission. So the REO company already has that figured into their price. So if you can somehow circumvent the Realtor the REO company is just keeping that commission. In other words the seller keeps the profit, not you.
You need a team.
See if there are any real estate investment groups in your town. Google it.
Then go to yahoo groups, msn groups and google groups and search for real estate investment groups in your community.
Find out when they meet and go sit in on the meetings. Don't discuss your plans until you know who you're dealing with. You're there to learn first, network second, and do business third.
Your goal is to build your team (investors – contractors – etc)
Profits based on pre arrangments made at time of investments.
Normally 1/3 each, after costs are settled.
Profts are divded after all actual costs involved. So first, all receipts must be settled. Investor 1, and even 2 and 3 may have made payments necessary (preferrably as agreed), and will be paid off.
Investor one received quid pro quo benefits by living at the site and in turn was responsible for a degree of on site presence (such as overall supervision and being on site daily). But investor 1 is entitled to receive compensation for actual trade work at a rate prearranged to. Some people would say that investor one should not get a bigger cut, and they would be right. But investor one can file a receipt for payment of actual work (such as building something, or doing certain specific measurable jobs, like laying tile, carpentry, even painting). Cleanings, supervising, worrying, running errands, grappling with issues, and being a hero do not count as tangible work, unless pre-arranged to as the "general contractor" payment.
Your best bet, and it is a bet since gambling is involved, is to start an investment club. This would probably be local and you could have meetings etc. Just open a bank account under the name to be used. Collect investment money and go for it.
Now an investment fund would give the idea of a mutual fund. A lot of time and red tape involved with selling stock on the market. This would also cost you the start up and leave nothing for investing.
i am an investor….people listen to this guy …one of the few that is offering practical advise.
I'm in the same boat and looking to buy my first property as well.
I set it up as an LLC.
Sole Proprietor is generally a bad move in my opinion as it offers no protection of personal assets should something happen to that property.
If you want to send me an email through the system here, I'm more than happy to chat about what I've done, who I've talked to, and what contacts I've made.
REITs have had a great run these last several years. Be aware it may not continue. I do not know the best one. But there are some index funds of REITs. Think about investing in those. They were among the best performing REITs this year.
RWR and VNQ and IYR. Each is up about 38% ytd. Sort of a broad brush approach to picking the best. Just pick them all.
I think you are right on starting as a corporation.
HOWEVER…as legalities vary from state to state on private investors, I think you really need to find a good small business attorney in your area, pay him a fee, and find out the in's and out's from there. A lot to consider with investors. 1) Are they going to be silent partners? Or 2) Are they going to have an equal say in how the company is run? Would be worth the fee.to find a good business attorney to lay it all out for you. Or find a book on amazon about starting a business. Once you are using someone elses' money, the company is no longer yours exclusively, unless you have a proven track record and your investors are willing to leave you in full control.