Shhhh! These Are The 5 Best Kept Secrets In Real Estate, Right Now
We’ve cross-referenced various publications, online sources of information and relied on some partner advice to do this research. While the list is in no way comprehensive, we hope that it will inspire you to look at areas that you may not have thought about previously.
Now, some of these locations are predictable, others may surprise you, and which way you decide to invest if at all, there will be a few things for you to think about, and indeed before you even haul out that checkbook, get the right advice first.
LET’S ESTABLISH SOME GROUND RULES FIRST
OK, so just before we get into revealing these fabulous locations (we know you’re just salivating to learn more), we must establish a few ground rules first:
Your risk appetite:
It’s all good and well has a pocketful of dollars if you’re lucky enough to
Be in that league, but the easiest way to make a bag of dollars turn into a wallet is to create a “dead” investment in property. So you must establish before you start exploring opportunities what your appetite for risk is. If you have a family, you may find it more comfortable to operate in the medium but steady growth ballpark, but if you’re younger and more adventurous, then higher but the managed risk could be where you want to play in or, you can operate in a number of these areas and spread the risk.
The level of advice you can access:
It’s great getting advice from your friends, family, and contemporaries, but they can only get you so far. Take the time to research real estate developers that know what they’re talking about and take some more time to examine them. This is no time to be timid, especially when considering that the average investment rises from around $500 000 for entry-level players to upwards of $1M. It’s not a small change.
How do you plan to finance:
Are you planning on using saved cash, cashing in investments, mortgages, or combinations of those along with private investments? These scenarios have ramifications and will need to be carefully managed by developers and legal teams to make sure you understand escrow and what that means to your situation.
What is the long term purpose here:
So you mean to become a player in the market, or are your “flipping” the property to take the profits and run, reinvest or expand. You have simply got to get your intentions down at this point of the game, and if you have partners, this is beyond important, and it must be contractual. You’ll thanks us later.
Commercial, residential, office space, or mixed purpose:
This goes without saying, but we’re going to tell it anyway. A rudderless ship is going nowhere, no matter how good the captain is, so get some good advice – always. Like from McGraw Property Management.
OK, LET’S GET STARTED
The 2019 “Global Liveability Index” of 2019 placed Toronto at #7 of the world’s most liveable and business-friendly cities. So this was a surprise even for us, but it turns out that this Canadian city, long favored by families, creative types, students, business people, and entrepreneurs thanks to a thriving I.T and design industry (as well as travel, financial services, and business), tops the list. Pack something warm.
MOUNT AIRY, NORTH CAROLINA (MAYBERRY)
It’s been a widely held belief that the next generation has not even been thinking about owning their own homes thanks to rising costs and stagnant salaries and if they would, certainly not outside of the urban core of cities. However, new data is showing the opposite. Millennials fall out of love with tight urban spaces and overpriced broom closets and opt for freedom and fresh air where growing families can still allow their children to play in the streets and where neighbors know your name. Turns out. Still, Mount Airy – is such a place. Check out The Realty Alliance for more.
When you think about California’s state capital, exciting and innovative real estate options are probably not what you’re thinking about off the bat. But while San Francisco continues to demand the types of rents that even a $100k a year salary will see you living in shared accommodation (Rent control! Rent control!), Sacramento presents a fabulous California style standard of living, a vibrant business community, a fantastic place to raise families and way more bang for your property buck if you’re prepared to do some snooping. But you’ll have to be quick; the region is calling more tech-types, which means that silicone valley prices are not that far behind.
SAN ANTONIO, TEXAS
While Texas has long drawn upwardly mobile families wanting to keep more of their money (thank you limited State tax), San Antonio has seemed to lose out on the more urban spaces of Dallas, Houston, and Austin. While it’s true that Austin is still attracting younger people who can afford the property there – San Antonio is also attracting a foodie and more vibrant cultural scene, adding to its liveability.
So this is our wild card, but make no mistake it ticks just about all of the boxes. In recent years the decline in the motor industry and associated industries has caused a massive drop in property values – but that’s precisely what we find so attractive. Detroit is the only entry on our list that makes sense for both residential, commercial, and industrial property, as you’re going to be able to stretch your dollar a lot further here than in most places. Get the right advice, find out who is moving there and get some “background” advice from detractors too – somewhere in between, you’ll find the truth.
Look, we know that not all of these options are going to be attractive for most people. Sometimes you have to stick with what you know, even if that means fewer returns in the longer run. Slow and steady returns are still better than fast and quick, ZERO.
Have fun, take your time and remember: easy does it.