Five Investment Strategies for 2017
As the 2017 selling season begins in earnest, we hope you are flooded with families and first-time buyers and empty-nesters looking to downsize and sell their lovely, well-cared for homes.
But that doesn’t mean you should take your eye off the ball of investments. Many of those homes – particularly the older ones being downsized – could be had for a bargain and sold months or years from now for a nice profit, assuming the market remains solid.
We’re not your hometown flipping experts (there are whole cable TV networks dedicated to that), but we do want to share a thing or two about property investing, especially if you’re ready to make your move in 2017.
1.Consider the market
We don’t need to rehash the three most important factors in real estate (hint: they all start with L), but now more than ever the location of your investment is key. The hotbeds are the hotbeds – you know the big coastal markets, Chicago and Florida. But what if you’re in not quite in that league yet? There are few emerging markets to consider.
Forbes is a big fan of the Dallas. Jumps in population, employment and home prices for three years running make the Metroplex the hottest area in the country, with properties historically undervalued. That may not last much longer. Forbes’s other Top 5 locations include the Florida cities of Jacksonville, Orlando and Palm Beach, as well as Seattle.
A separate Forbes article says Texas as a whole is a smart place to invest (we see you, Austin), as well as Boston. They do mention that traditional hotbeds like L.A., the Bay Area, New York and Washington, D.C. are simply too expensive due to lack of supply.
2. Rental resurgence
The rental market tends to roughly follow the overall real estate market, with some exceptions. Real Wealth Network recently took a look at top rental cities for 2017,
and while the list is topped by familiar suspects Orlando, Tampa and Jacksonville, there are a handful of Midwestern, Rust Belt and Deep South cities represented. So take heart friends in Kansas City, Mo., Huntsv ille, Ala., Indianapolis, Cincinnati and Pittsburgh. The strength of the jobs market is creating demand for rental property as well.
3. Look into improving what you’ve got
Not all investments are straight sales, you know (sorry agents… that’s the way it is). If you have a listing that is just knocking on the doorstep of the price your clients want, or a listing that needs to stand out just a bit more from the crowd, there are a number of wise renovations that can really have a return on their cots.
Realtor.com breaks down the dollars and cents of some key renovation pieces in this super helpful article , and you may (or may not) be surprised to know that fiberglass installation gets you your best bang for your buck. Combine that with a new, steel entry door, manufactured stone veneer, a minor kitchen remodel and a garage door – just to name a few – and that asking price may become more than just a pipe dream.
4. Bigger isn’t necessarily better
Sure, you might know where, but what TYPE of home is going to be the best investment. Recent information outlined in this article from Business Insider says smaller homes… dare we say, tiny homes?… are becoming smarter investments. The smallest 25 percent of homes, they say, grew nearly 10 percent in 17 of the top 20 markets. That increased appreciation, coupled with the fact the fact that it takes less capital to purchase them than it does a McMansion in the suburbs,
5. Who needs a house at all?
Hear us out here: Sometimes vacant land is a better investment than land with a structure on it. You save on property taxes, for starters, and with little to no maintenance you can afford to let it appreciate for a while the neighborhood or city it is in or near develops. You might even be able to make money on the land while it’s vacant, leasing it to hunters, timber companies or even growing crops. LandCentury.com has a nice analysis of this, and also highlight rental property and flips as green-light investments.