Some may argue that a few of our real estate markets are already too hot for investing, so where should investors be looking to in order to get ahead of the expanding home buying surge?
Some of our most popular tourist cities have real estate investors complaining about how heated the competition is, how fast home prices are rising and how unreasonable sellers are being on terms. So where to invest now?
The most successful real estate investors and those who have reaped the most wealth have always been those ahead of the curve, not those following the herd.
However, with homeownership as a whole down, and plenty of vacant homes how can investors apply the principals of buying low and ‘they don’t make any more land’ for reeling in profits?
A closer look at trends in coastal real estate prices might be the answer. There may be plenty of land and homes available in the middle of our country and its many suburbs but they aren’t making any more waterfront (yet). Vacant lots and teardowns in even average areas frequently go for $2-4 million. These are properties your grandparents probably told you they thought was way too expensive at $90,000 back in their hay day.
Foreign buyers are still surging in and as our economy improves vacation homes will pick up steam. However, there is also an increasing need for more affordable housing in emerging resort areas as Americans are more frugal with their spending and many have lost a lot of their retirement funds.
This means the potential for attractive real estate investing profits for those shopping just outside some of our most popular resort and retirement areas. These homes can be flipped now or later and can deliver incredibly high rents during busy seasons while meaning less management hassles and wear and tear.
Some examples could be Port Charlotte, FL, Mobile, AL and Michigan’s northern beaches.