How to find Appreciation

Question

1. Find the price range with the greatest amount of appreciation over the last 5 years

2.find the area with the greatest amount of appreciation in that price range.

3.Find the neighborhood with-in that area and price range that appreciated

Can someone please explain how to do this and maybe give some examples..

Thanks

Andrew Gingerich · Answer

Well I don't know the statistics most investors, especially those that survival are not investing for appreciation. They consider appreciation the icing on the cake so to speak. But if your looking for icing after finding a good cash flowing property with the tenant paying the principal down I would offer this advice.

1. Talk to several realtors in your area and ask them want neighborhoods are sought after, and what neighborhoods are gentirfying

2. Find job growth statistics in the city or town (local papers like to publish this info).

3. Identify new businesses moving to town and if they are likely to employ many new folks.

4. What's growing in the neighborhood (E.g. is a hospital in the neighborhood expanding? Is a data center moving in?

5. What is the population growth like in the city. Is there a net influx of residence over the last five years?

6. What is home builder confidence like. Are people building?

7. Whos moving into the town? First time home buyers coming for jobs? Retirees? Both?

In the end I would suggest looking for a place with a healthy and growing jobs market that has a culture and neighborhood that is sought after by buyers.

I'll end where I started however, investing for appreciation alone is speculation and highly risky. I think in this economy it should be your icing after finding a great deal that cashflows.

Best of luck

Andrew

Roger Taaffe · Answer

Thanks for the response...