Real estate investing is a matter of perception. Your perception of the evolution of the market and its evolution. As always, the goal is to buy low and sell high.
You want to buy inexpensive land and sell it as a high-priced real estate, after appreciating it enough to generate a net profit. The sale of the property is an art in itself.
The purchase of a first parcel of land lends itself to sound rational recommendations:
First, examine the housing price trend curves in your area. While most housing markets are in decline (and housing markets in Florida and California are adjusting after more than a decade of overvaluation), there are markets where housing prices are rising. It is a decent forward indicator that there is a market for expansion.
Second, look for work related news. The purchase of a home requires a stable source of income. New employers who settle in a city or the opening of a government branch are a strong indicator of the opportunity to find good, well-paying jobs. Where well-paying jobs rest, home purchases follow.
In this regard, talk to your local planning office. Are there recent purchases of "rights of way" for the laying of sewer lines? Does the manufacturer of local telephone cables plan to exhaust the fiber optic lines? An unavoidable trend in the construction of new housing. These things indicate areas where the growth of the house is immanent. Educational requirements (found in your local newspaper) and the opening of new parks are other important sources of information.
Before looking at the field, check the use of the adjacent commercial real estate. Look for "family friendly" or "favorable residential" commercial properties: homes close to the grocery store and clothing stores tend to be more expensive than homes that are farther away. If there is a movie theater nearby or if you plan to create an elementary or middle school, consider this element in the size of your home and in its amenities. buyers looking for these features are looking for "mover upper" homes – with a little more floor space and two (or three) rooms for kids. Anchorage stores, such as Wal-Mart and Best Buy, are also to be searched. These companies spend millions in surveys on shopping habits before buying a store. If they buy land, you have about a year to a year and a half to find out about real estate properties near single-family residential and rental properties.
You can even reverse the situation – if you are talking to a group of commercial real estate investors, building a shopping center as the nucleus for home development is also a viable combined strategy. This is also true for very urban areas. Many downtown areas that have been abandoned by businesses can be converted into apartment buildings and some of the older housing developments are being demolished for mixed-use spaces with commercial and residential areas. . In particular, you can often get block grants to help fund projects of this type, and some HUD programs can be very helpful to you in "urban renovations".
Demographics in your area are another source of surveys. Examine United States Census numbers (and local county counts) for the median age and the average birth rate per capita. You want to invest in areas where the population is already growing. Significant biases in & 40; and 39; Fifty years or so indicates that you have a group of people who will soon retire, and retirees are very much inclined to sell their properties. Places to watch are most of California&39;s urban areas and vast expanses of the rural Midwest, where demographic trends have shifted entire cities since the 1950s, when the country&39;s population shifted to urban areas .
If there is a local town planning council or urban development council, be sure to get the minutes of all the meetings of the past year. City Council offices will keep them on file. Also try to attend future meetings as an observer. Talk to city and county officials about construction and housing trends What you are looking for is real estate that will be desirable in two to three years; Check out the Road Planning Atlases and find all the data you can find. Also look for quaint real estate – the lakefront property is as close to a guaranteed bet as you can get by investing in real estate, especially if there is a lake at the "end of the world" d &39;an axis of development. Similarly, if the city council is seeking to acquire land for the parks, buying adjacent land means that you can sell it later.
Finally, talk to professionals in your communities. Talk to the architects who can tell you whether they are busy or not. Maintain professional contacts with engineers, bankers and lawyers. They will usually be aware of projects well before the general public. Also make a habit of reading the business section of the local newspaper. Often, the first clue that a company can install in your area is buried at the bottom of a column on page 8.
Using the instructions above, we will help you find the "dormant" raw terrestrial properties. These "dormant" properties are ideal for low cost and high selling strategies used by successful commercial real estate investors.