5 Tips in Choosing the Best Places to Invest in Real Estate


If you’re looking for an avenue to put your money in, real estate can be one of the best investments you will ever make. The thing with real estate is that it’s an investment that only appreciates in value and rarely depreciates. You can earn income from either renting it out or selling it after a period of time. If you properly do careful research and choose the best places, you can see returns in a jiffy.

Getting into investing properties can be a little tricky, so here are tips that can guide you in choosing the best places to invest in real estate.

1.   Location

More than how good your property looks, it is important to keep in mind that location plays a significant role in the value of your property. When it comes to its valuation, location contributes around 50 percent. Meaning, location is key.

  • Properties in the city close to numerous establishments like shopping malls, hospitals, schools, and business districts will more likely have higher values.

  • Access to public transportation is also very important to many people.

  • Properties near public transportation or can be easily accessed tend to have higher values as well.

However, be very wary of properties situated on main roads or adjacent to stations. This can cause unwanted noise and traffic that can depreciate the value of your real estate. You can check out bestrealestatedirectory.com for real estate property with the best locations.

2.   Population growth

If you are putting your property up for rent, no matter how lovely your apartment is and even if you hire the best contractors, you will not be able to make a profit if there are no tenants. One of the factors you need to consider when choosing the best places to invest in real property is the population growth of the area.

  • Do some research and find out how many people are living in that area and if there is potential for tenants.

  • Areas with a booming population will also affect real estate market growth and valuation. The higher the demand for rental property, the more profitable for you.

  • On the other hand, with a declining population, you will find it harder to sell or rent out the property you invested in.

3.   State of economy

You also need to watch out for the location’s  state of the economy.

  • Find out what drives the economy and how it will affect you as a real estate investor. For example, if the economy of the area is driven by tourism, it might be better off for you to rent out your property as an Airbnb instead of trying to profit from selling it.

  • Looking at how the economy is performing will also help you in evaluating the area for real property investment. If the economy of the area is doing well, consequently, the value of your property appreciates.

With a good economy, this means more and more people are interested in buying property as well.

4.   Job trends

Another factor you need to watch out for is the employment and job trends.

  • Again, do your research on the unemployment rate, job opportunities, wages, and businesses in the area.

  • You must invest in areas with growing job opportunities because this also causes a significant demand and valuation for real estate.

  • Excellent job opportunities will also mean that having ideal tenants who are financially stable to pay for their monthly rental fees in full and on time. This is also a sign of a growing economy, which will benefit the value of your property as well.

5.   Safety, security, and value

Anyone who will be looking for a place to stay or home to purchase will consider the safety, security, and future value of the property.

  • Tenants and home buyers usually want a place that has privacy and is quiet. It is also essential that the area you choose has low crime rates.

  • Take some time to do some research on the area and understand the neighborhood. Investigate the average rental rates, real estate market, and home sales of the area.

  • New construction in the area will also impact the value of your real estate investment either in a good or bad way.

  • If you find out new developments of malls or infrastructure works in the area, this will make the value of your home appreciate. However, if you find out that a power plant is one of the upcoming projects in the area, you might want to reconsider your investment.

Just like any type of investment, as an investor, you just need to identify highly profitable locations. Just follow the guide above and consider the factors listed. Those factors will lead you to choose the place with the highest potential with the lowest risk to invest in real estate.

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