Growth Sweet Growth: 3 Concepts To Remember When Purchasing Investment Property
Whether you want to live in a new home and watch it build equity, or you're on the hunt for investment property that you expect to appreciate, you want to purchase real estate in areas that are going to grow in value. There are 3 concepts to bear in mind to buy property today that builds equity for tomorrow:
18 hour cities
Not every town can sustain commerce and entertainment 24 hours a day. The 18-hour city is the new goal of many such places, where things are available from 6am to midnight, and shut down for the overnight hours in between.
Millennials, who number 80 million, find this feature attractive. They were once the kids who stayed up way past bedtime playing video games, and they want access to services and goods as late as they can get them. Since they are the the driving force in the future of real estate, properties in 18-hour cities will hold their value.
Starter homes
There is a serious shortage of new starter homes available for sale in the U.S. and Canada. Developers have been focusing on high-end developments and neglecting the first-time home buyer. This has increased property values across the board. Owners of smaller homes are holding on to them, only adding to the starter home shortage.
This trend will hopefully change in response to market demands. As more of the younger generations seek to become homeowners, smart developers will build the more modest and inexpensive homes these buyers desire. Until that happens, any smaller home in a decent area will only increase in value because it will be so rare.
The Starbuck's effect
It's been conclusively shown that buying property near a Starbucks can significantly increase the resale value. "Location, location, location," isn't just a trite mantra when dispensing real estate advice. It's an important concept to remember when shopping properties. Buyers want to be close to activities and services that they use often.
Coffee shops aren't the only bait to bring buyers to an area. Good schools, sidewalks, parks, and jobs are also features of neighborhoods that will be popular and thriving in the future. A full service real estate agent is a good source of valuable input when you seek areas in which to invest for the long haul. They know the amenities and histories of their local beats, and they have easy access to the inventories of homes that best fulfill your wish list.