When it comes to real estate investment, a property’s location, nearby resources and past come into play. That said, investment is about a lot more than simple logistics. If you’re getting your feet wet with property investment, you should understand a few investment dynamics, first. There’s a reason property management providers pack a property portfolio which prioritizes variety. Variety matters, and so do these qualities:
One: Property Tax
A location’s property tax says a lot about its value. A solid property investment will be reflected by its taxes. Taxes aren’t standardized across the board, however. An investor is wise to identify rightfully high property taxes—such as high tax rates in a good neighborhood. Check with your town’s assessment office, and look at the location’s tax information before determining its value.
Two: Crime
A property’s value may be lowered by nearby crime. Talk to the police, or visit the public library to ascertain the neighborhood’s crime rate. Don’t ask the homeowner. Instead, look for items which depict the area’s serious crimes, vandalism rates, petty crimes and recent crime activity.
Three: The Job Market
The area’s job market health, too, will determine a property’s worth. Locations experiencing employment growth, for example, benefit from higher-valued properties. To determine an area’s job market rating, navigate to the U.S. Bureau of Labor Statistics. If a new company is moving into the area, you can assume that new workers will, too. This will cause house prices to change, so keep an eye out for rising and falling prices.
Four: Proximity to Local Amenities
If a property is close to local amenities, it’s a good investment. These amenities include:
- Public transportation hubs
- Schools
- Shops and markets
- Public facilities, like medical centers, libraries and parks
As they say: “Location, location and more location.” Properties near these amenities are almost always good investments, at the base level. Discuss investment options with Gassen, and determine the best place to direct your money.
Sometimes, it’s nearly impossible to determine a property’s worth up front. That said, it’s always better to have an estimation before you invest. Whether you’re investing in an apartment complex, an individual household or a collection of townhomes, the above qualities can help. Check out the area’s overall population, and examine its culture closely. You might find information which eludes other investors.