Cities to Watch Out for when Investing in Real Estate
September 29, 2010 by USA Homebrews
Filed under california brew house
When investing in real estate, it is important to take note of the location of the investment properties you want to buy. It is because it can affect the value, as well as the “selling points” of the property you want to flip, wholesale, rent, or rehab. Therefore, if you want to make your real estate business a huge success, you’ve got to carefully choose the cities that you want to invest in.
For those who want to invest beyond their home turf, Forbes.com has recently released an article on the country’s worst-selling housing markets for 2010. If your target city is included in the list below, then you should definitely think twice before pursuing your plans.
Milwaukee, Wisconsin – according to the article, Wisconsin’s Brew City is the worst-selling housing market in the U.S. Last year, the number of unsold homes in the city jumped by 42% from 2008. It was reported that during the housing boom, developers built lots of luxury condominiums even in areas that are far from the city center. When the housing bubble burst, these expensive condominiums went unsold, dragging down the housing market.
Denver, Colorado – No. 2 on the list is Denver, Colorado’s capital and most populous city. You should weigh your options carefully if you want to try investing in real estate here. According to the article, the number of unsold homes in Denver jumped 27% from the previous year and the average sale prices remained unchanged.
Los Angeles, California – you should also think twice before making real estate investments in the Californian city of Los Angeles. Jonathan Miller, president of the New York City-based real estate appraisal company Miller Samuel, said the Golden State is the “birthplace of subprime lending” as there are lots of subprime mortgage abuses in Los Angeles and other neighboring cities. Los Angeles ranked third in terms of slow sales rate and is No. 14 when it comes to cities with the highest increase in inventories.
Before you try investing in real estate, it is important to conduct some research first so you can determine if the city you want to invest in has a healthy housing market or not.
Get more real estate investing tips from the biggest names in the business by logging on to www.REIWired.com. The website features quality articles, audio files, and videos that discuss the ins and outs of property investing.
