I am currently working on a project to liquidate my assets. This will allow me to relocate. It will probably take another 5-6 months. Just wondering where others are taking there money for deals and appreciation. Does anyone live in or have an area that they think is coming off the bottom? I would like to find an area that is just starting to show signs of a comeback or in the beginning stages of a market pop.
“…coming off the bottom”? How about New Orleans or any of hte southern parishes of Louisiana…?
Trouble is, it will probably happen again.
Keith
I would think down south as well, the only problem I have with that is simply that all the pros say don’t buy expecting to appreciate. Robery K says profits are made at the purchase. I think there is buzz about a proposed Hyundai plant being built in one of the southern states.
I’ve heard Boise, ID is fantastic right now.
Nate-WI
NY Times business section on 5/8 or 5/9 listed a few remaining rising markets. My town (Binghamton, NY) was among those listed. Not sure whether that is good or bad for me (I have a few rentals now, but looking to continue to acquire for the next few years). Anyway, I can “birddog” a few for you if you’re interested - I have had to pass on a few recently. Good luck - K
Thanks for the input. Anthony, I realize the deal is made going in, but markets coming off the bottom usually have more deals and offer the bonus of appreciation. Thanks Nate for the specific Boise lead, I have started some research and feelers with local agents. Information is gold. Bingo, although the east isn’t my first choice to relocate I will start looking into your area as well.
Mexico! Rocky Point is booming. I went there last week to find land and was shocked to see all the newly built condo’s and homes. Do not buy anything that is not within walking distance of the beach. I found beach property starting at $50000 per lot and going upto $500,000. I am attempting to locate true investors to help take down a 30 acre parcel on the beach with plans and approved prints to install roads and survey quarter acre lots upon receiving an offer of $3,000,000. That is a total of 120 lots. Cost per lot at that point would only be $25000 per lot. If you decide to invest in Mexico, make sure you work with a realtor from the U.S. that knows how to protect you. Most so called agents located there do not have a license of any kind. Do not do anything different to acquire property there than you would do here. That includes purchasing a title policy.
I was under the impression that foreign owner ship wasn’t allowed in the tourist zones of Mexico, 25 miles from borders, beaches and I believe all of the Baja. Could only have posession through a trust. Also the pace of government approval, slow construction practices, turn my interest away from Arizona’s beach (Puerto Penasco). Just can’t see the return on capital being generated fast enoough. Haven’t been there for about five years and it might have changed. I was in San Felipe this January and noticed a little development north of town, but not enough to call it a boom.
Restricted zone as it is called. It goes into a bank trust. You own the trust. You can live there, rent it or do any thing you want for 50 years and at that time you can renew it for 50 years. Once you sell it the buyer opens a new bank trust for an additional 50 years. Not much of a restriction in my opinion.
I met a guy from Arizona that moved there due to the boom that has been going on for 2 years and the construction is backed up 18 months now. There are sections on the beach with 2 bedroom condo’s going for $600000. Sandy Beach is a good example. Do not buy prebuilt. Buy preconstruction or land for a great return. Do not buy anything inland or it will sit without appreciation.
First, the Nissan plant is moving to Tennessee right outside of Nashville. There is actually a great deal happening in TN right now. The land in Middle TN has had year over year appreciation of close to 30% the past 2 years. Many real estate economists are saying TN will be the future hub of the US housing market because it is within a 1 day’s drive of 75% of the US population.
Second, stay away from coastal areas unless you are willing to pay an arm and a leg for insurance! In fact, there are a lot of insurance companies cutting their coverage to coastal areas because of the coastal flooding and hurricanes. Plus, with rising sea levels, you don’t want to end up losing the property in 10 years if you are to close to the ocean.
I can’t say enough about Tennessee. I have just purchased a home site with intentions to build a beautiful log home. 3 acres of land and a 3000 sq foot home for around $250,000.
Where else can you get that kind of deal?
One quickie about Coastal areas…
In New England, many coastal areas are rock bluffs, buffered from the sort of ocean level rising problems you mention. In my town, I would say 90% of the oceaside homes are at least 20 feet above sea level, and at least 5 - 10 feet above Mean High High Water. My house, which is 5 blocks from teh ocean, is actually almost 100 feet above sea level.
So, I think, as always, you have to look at specific cases.
See this link:
http://www.census.gov/popest/estimates.php
It came out in April. Look under “Popular Tables”. There are several data sets there that bear reading. The one that will get media attention is the list of 100 fastest growing counties in the country.
But there is much, much more info available, and one of the best is the “Cumulative Population Change” report. You can choose any state and download an Excel spreadsheet that can be sorted any way you like (highlight the sheet, then click Data-Sort-then select the column to sort by). The Annual Population Change Report is also a favorite.
I have to ask… using these sorts of resources is very useful, but what nethods do you use to get -ahead- of the growth patterns? Guessing? Local fundamentals analysis?
I am imagining it is something like predicting stocks, but with Real Estate patterns there are lots of data points that are rooted in reality.
This is it. This is how you spot early growth areas.
The data sets on the census site are as far upstream as you can go and get reliable data. Using the Sort function in Excel, you can compare the annual numbers with the cumulative 5-year data and the emerging markets will become apparent.
To get any further “ahead” can be dangerous to your financial health. Buying into a market before there is any impetus for growth can make for a long wait. Real estate investors don’t create markets—they serve them.
What attracts growth? A myriad of factors may make an area attractive, including weather, regulatory climate, taxation, a university, large research facilitities, good transportation infrastructure, natural attractions (e.g. lakes, mountains, beaches, etc.). But what those features have to attract are jobs… plain and simple, without jobs no area will grow.
The cutting edge of job creation is borne by economic developers. You can read what they read at www.siteselection.com, and you can compare area trends at www.developmentalliance.com.
But even if you’re a developer, caution is in order. I’ve been a developer for over 25 years, and would much rather be the second or third guy in than the first. Scouts usually come home with a butt full of arrows.