U.S. Real Estate Markets With Consistent Price Appreciation
Buying home, information pills online condo or any other real estate in a market that is protected from a bursting bubble is every investor’s dream. Knowing where to look for these bubble-proof markets and how to identify them is crucial.
There are some important factors that investors should consider when searching for stable investments such as single-family homes, condos or any other type of real estate. Some of these factors include a fast growing population (which positively impacts the demand for housing), a solid and diverse economy (which impacts employment rates and subsequent demand for housing), rising incomes (which impacts buyers’ ability to purchase real estate), a developing infrastructure (which contributes to the appeal of a city or community), and restrictions on future real estate development (which limits future supply of real estate). Investing in real estate within communities that meet these criteria may prove to be more profitable than communities that are missing one or more of these factors.
A recent report by Business 2.0 Magazine identified U.S. cities that have consistently demonstrated price appreciation in the real estate market. The October 2006 issue of the Magazine identified the top 5 real estate markets that demonstrated an upward price trend over a long period time. The top-ranking cities were:
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1. San Francisco, California
2. Los Angeles, California
3. Seattle, Washington
4. Boston, Massachusetts
5. New York City, New York
San Francisco topped the list with an average annual home price appreciation of 4.2% from 1949 to 2006. In contrast, the national average was 2.3%. Strong restrictions on real estate development and a limited geography helped push San Francisco to the top slot.
Los Angeles ranked second in the report. The average annual home price appreciation in Los Angeles was 3.7% from 1949 to 2006. Reductions in available land and increasing restrictions on further development helped pushed Los Angeles to the number 2 slot.
Home prices in Seattle, which was third on the list, demonstrated an average appreciation rate of 3.2% from 1949 to 2006. While Seattle made the top 5 list, recent easing of building restrictions may cause Seattle to fall out of the top 5 over the next few years.
Boston was fourth in the rankings. The city has seen annual home prices appreciate by 3% over the period from 1949 to 2006. A strong increase in per capita income contributed to Boston’s high ranking.
New York City follows close behind with an average annual home price appreciation of 3% from 1949 to 2006. A limited geography, large population, and finite number of properties contributed to New York’s high ranking.
While there is no guarantee that any of the real estate markets listed previously are truly “bubble proof,” the factors described above may help investors find the profitable markets and avoid “bubble” markets. Since the real estate market is constantly changing, be sure to seek out the services of a skillful real estate agent to help you navigate your next real estate purchase.
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Connecticut Real Estate Investors Assn. (CT REIA) Announces March 2011 Meeting With Tax Reduction Specialist Al Aiello
Article by Connecticut Real Estate Investors Association
The Connecticut Real Estate Investors Association, here or CT REIA, remedy in association with Al Aiello, sildenafil is announcing the March 2011 CT REIA monthly meeting. This event will take place on Monday March 21, 2011, from 5:30pm to 9:00pm at the Crowne Plaza Hotel, 100 Berlin Road, Cromwell, CT. This event is free for CT REIA members, and for not-yet-members.
Al Aiello is a national speaker specializing in wealth protection. He teaches dynamic strategies on tax reduction, IRS audit-proofing, entity structuring and asset protection targeted for investors and business owners. He has been an investor for over 30 years. He first got his real estate license and went on to broker millions of dollars of real estate. He then received his CPA by passing the first time, not an easy accomplishment. Subsequently, he got his Masters in Taxation graduating with the highest honors in this rigorous program. He was immediately hired as adjunct professor where he taught partnerships, corporations, asset protection and real estate taxation (a course that he suggested, created and developed). He has been a business owner since 1980 including having had his own tax practice that specialized in real estate and IRS representation. As a national speaker with home study courses, he has thousands of students across the country who use his strategies to pay little or taxes, audit-proof their returns against the IRS and protect their assets.
Attendees of the meeting will learn: how to avoid big costs and IRS fear with audit-proofing strategies; when is the best time to file your returns; tax reduction strategies for privately owned and operated properties; tax deductions for depreciated land and housing related items; tax reduction strategies when selling properties; and much more. Al Aiello will share his vast experience and extensive research so he can help attendees legally pay little or no taxes, regardless of their income situation.
CT REIA is an organization that provides motivation, networking opportunities, and up-to-date education for people who want to buy their own home or investment property. Each month, a nationally known real estate investment trainer is featured. Professionals, investors, landlords, property managers, realtors, contractors, wholesalers, rehabbers, and the general public are invited to attend our meetings. For more information on this and other real estate investor courses from CT REIA, please call (860) 265-4414 or visit http://www.ctreia.com .
About the Author
CT REIA is an organization that provides motivation, networking opportunities, and up-to-date education for people that want to buy their own home or investment property.
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Strategies For Buying Real Estate In A Slow Market
The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, approved the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, capsule other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.
In regions of the country in which the real estate market is slowing, there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:
1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you “must have” and items that you would be willing to forego if your other priorities were met.
2. Consult Experts. You’ve no doubt heard the saying that “all real estate is local,” so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.
3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask your real estate agent to provide you relevant sales statistics. For example, your agent can provide you:
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a. A summary of how many properties are available in communities that you deem desirable.
b. How long properties are taking to sell this month, last month, last quarter, last year, etc.
c. How many properties have sold this month, last month, last quarter, last year, etc.
d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.
e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.
f. Detailed data on properties that are similar to the type of property you desire (often known as “comparables” or “comps”).
4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.
5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.
6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.
7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.
8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.
9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to “fall in love” with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.
While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent who can provide you with additional strategies to help you reach your real estate objectives.
