Let’s say you have $1,000,000 right now and you want to buy an apartment complex.
Where would you buy it?
Seattle? Chicago? Miami? London? Vladivostok? Johannesburg? Sydney?
Why?
Or would you be more likely to look at microeconomic factors such as finding a complex that has been poorly managed? But assuming the microeconomic factors are identical, what would make you pick one location over another?
Hi,
Do you have a computer? Do you know how to use Google? Can you ask Google for the 10 most growing area's in the US?
Now I just happen to know all of them but I will throw out a few! Washington, Texas, Washington DC Metro, Georgia, ? ? ? ? ? ? !
As a professional investor I buy because of the numbers! Obviously location is better location over worse location!
I would not look to invest outside of the US unless it was a specialty property in that one location where owning and managing overcomes distance and culture / currency!
Microeconomic? Your sounding like a first year college student! Were not that formal as real estate investors, save that for your investor presentation.
Obviously buying a property with upside is much better than buying one at the peak of income, management and market.
Property condition, appeal, demand, location, growth curve, employment, etc.
GR
Didn’t know it was that simple… I tend to over think things…
When you say “growing,” can you name a specific statistic or two?
Is this just population growth? GDP per capita growth?
Austin, Texas looks pretty good, but whose to say how long that growth will last…
I’m sure if I knew the statistic, I could find a reliable source for estimates over the next 20 - 30 years.
One buys multi family buildings to make a profit/income (hopefully if they have purchased at the right price) AND some buy so that they can have a job…that would be to manage that property and pay themselves for that management as well as earn profits from their investment or leveraged debt.
Hope this helps.
Rob
The question was WHERE… as in, what city.
What would be better, Seattle or Omaha? Austin, TX or Charlotte, NC? For example…
But seeing as I’m making a profit in an RV park in the middle of nowhere town, Florida… I’m beginning to think it doesn’t matter that much as long as it’s well-managed.
I just want to make sure I buy in a growing area, not in the middle of some oil boom town that will be a ghost town in 5 years, for example.
You won’t get much for $1,000,000 in Seattle. That’s enough for two middle class houses.
There’s a very good chance that prices will stay strong in Seattle. San Diego is a pretty safe bet, but again, your $1,000,000 won’t go far. Santa Barbara California should maintain price level and growth. I suspect that your million will get you a small cottage in Santa Barbara.
Portland Oregon has a severe housing shortage, so that would be a good place to build a new high rise apartment building. Maybe your million would buy the land to build it on.
You’ve got enough money to play in the West coast market, but you aren’t going to be a big fish.