Thursday, July 2, 2015

What type of property should I invest in?

June 24th, 2013

What a great question. We get this one a lot and the answer really lies completely in the middle class. What do I mean by that? What I mean is that the best place to purchase for an investment property is the property that most people in the country are looking for, 3 bedroom and 2 baths.
The 3bed/2bath home is the single most sought after property type in the country. How big? 1200-1800 sq feet. Very average middle american home. Why is that the best investment type? #1. Most people are looking for it. #2. Historically it has shown to increase in value over time. #3. Newer families want it and families that have kids leave the home want it. #4. Affordable. Most every city has an affordable market and this home is what sets the standard for everything else.
If you don’t want a home then that is fine also. Many people invest in ‘units’ or apartments and go that route and it has proven to be a very successful way to go about things. When people ask me about this I am always curious what their long term strategy really is. Do they want to make money month to month or do they want some long term equity? If someone wants month to month money then I tell them to go ahead and go for the units but if they want long term equity they really need to look at the land the units are on. IF the units are in a good area with good growth around them then go for it, but if the units are in a slum or somewhere else then i tell them to run away because over time they won’t make real money on the equity of the property.

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