Hello to all - I’m finally on the verge of making my initial jump into the RE investing world and would like everyone’s take on where they believe the next emerging market will be. I’ve done some research, but there’s so many markets that actually look quite good, each for their own unique reasons. I have an oppourtunity to buy some rental properties in the Albuquerque, NM area, but long-term appreciation doesn’t look good there, even though the cash-flow does. El Paso, TX is one of the most undervalued markets in the country, but it also sounds like the NM market. Someone told me recently that the Carolinas to them look like California of the 1970’s. I’ve also heard of an area near Seattle that is looking to take off…so many properties…so little time…(BTW, I plan on investing long-term).
Thanks in advance for viewing my post and adding your comments.
Demographics. Where will the baby boomers want to go when they retire? Mountains, lakes, beach. What is most scarce and most desired? Proximity to water. Barrier islands on the east coast, rivers, lakes, all kinds of water views.
I know that most property near the ocean is expensive, but it is scarce and in demand. I see the demand growing in the future. I don’t pretend to know the answer to your question, but I think that getting in the way of a huge flow of retirees takes a great deal of the risk out of real estate investing. I don’t know too much about other areas, but I know a lot about my little corner of the world, Emerald Isle, NC
Cash flow will probably be negative on nice properties. I’m not much of a buy and hold type anyway. Buy, fix, sell. Who’s next?
I posted this Fortune article in another thread. Top 100 Markets for 2006…according to their data. I’m not sure how correct it is, but Fortune worked with Moody’s Economy.com and Fiserv CSW on the analysis of home sales data for the country’s 100 largest metro regions.
The article puts Vegas last and ranks San Antonio #1. Guess we can start taking bets.
San Antonio #1? Las Vegas #100? Sounds like they’re looking at the list upside down. Toyota is building a new truck plant there so their economic output is looking up, but there’s mainly military & service sector jobs there, so wages aren’t the best. Is there a way to look at that rating from 2-3 years ago to see how correct that forecast has become? That would be similar to having a crystal ball…
economists are famous for being off on their predictions in the short term.
first off, half the cities are in the 4-6%. any idiot could make that
prediction. in any given year, half the cities in the US will go up 5%.
secondly, it has san diego as dropping 3.4%. I bet san diego will
see atleast a 6-12% drop if not more.
SLC which I have been following closely for a year, will definitely
see a double digit increase in 2006.
use this report as a guideline, not a real prediction. no one can
predict the future. Fortune is famous for selling magazines not predicting the future!
Sure there are better or worse places to do REI, but too many people (IMHO) focus on trying to be in the right place at the right time (speculating/ hope for appreciation) instead focusing on HOW to get good, solid cash-flowing deals deals done in an efficent manner.
Hi Nira, I have a property in San Diego, I have heard from a few people that San Diego is a tricky market and anticipate a fall on the re market. But why? what is your opinion on as to why the market is dipping.
Also, I took a look at your web page, and found interesting the way you have set up your re business as a coporation and re invest via a 401. I am interrested in doing something similiar, any ideas? refereces I could use?