If you pin a United States map against the wall and throw a dart, chances are, anywhere you hit, there’s a likely possibility that the location has some degree of ongoing foreclosure activity. However, despite the widespread housing dilemma that rocked the nation, there are some areas and cities that have proven to be better poised to withstand this crisis.
The Strategic Approach
While these identified areas are far from immune from the adverse effects of the down market, it presents a lucrative opportunity for people who want to invest in foreclosed properties. How? You can still purchase a foreclosed property at a significantly lower rate, but with higher chances of raking in bigger revenue when you will eventually sell it once the market has fully recovered.
For people who are interested to buy foreclosed homes for their family to live in, wouldn’t it be great to have it in an area where employment is good, the schools are great, and the crime rate is low? Taking a more strategic approach in your foreclosure investment plan will mean consciously choosing a more desirable place where there is easy access to better opportunities and amenities.
Here are some important variables that you need to take into account to choosing a city or state when you buy a foreclosed property:
Unemployment Rate and Job Market
Vacancy Rates
Residential Property Price Appreciation Rate
Recent House Sales
School District
Crime Rate
The Top 10 Cities to Invest In
The great news is, you don’t have to personally conduct your own study for this since the industry experts have already compiled a list. Check out the top ten cities provided below:
Binghamton, NY
Augusta/Richmond, VA
Syracuse, NY
Yakima, WA
Hickory/Lenoir/Morgantown, NC
Kingsport/Bristol, TN-VA
Columbia, SC
Charlotte/Gastonia, NC
Provo/Orem, UT
Beaumont/Port Arthur, TX
The list prepared above is also based on two important goals of any prudent real estate investor: first, to be able to purchase a property with the best possible discount, second, to purchase in a particular area where the future return on investment is expected to be stable over a long period of time.
When it comes to investing in real estate, it is always best to choose markets that do not experience any dramatic fluctuations in property values. The important thing to remember, there are also other equally viable places to invest in that may not be on that list. There are a number of possible areas with foreclosed properties that represent less investment risk because it is less volatile.
Ultimately, it will be your choice as an investor, although it is generally advisable to make informed decisions. Of course, as you may have already surmised, the housing problem is not expected to continuously go downhill. This means, time is of the essence. As an investor, it is important to make a move now, not only to get ahead of the others, but most importantly, opportunities are not always there to wait.
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