If you could start investing anywhere, where would you go and why
NOTE: not sure if this is the right category or not....
Not that I'll be moving anywhere other than my home town, but just interested to hear from some of the seasoned investors here. I'm sure there are a million different opinions and probably not a single "right" answer but I hope we can have a discussion about what makes a good market or what you look for in an area.
What's the best market to invest in today and why?
> I would avoid any MSA that is declining in population, period.
I'm wondering if this isn't too drastic. In Cleveland for example, the population is declining by 1%. But the Cleveland Clinic is building new hospitals, which means more nurses, medical techs, ambulance drivers, orderlies - people who RENT and are in a stable industry. I don't care how many billionaires or homeless people leave Cleveland because those aren't my renters. The segment of the population that matters are those who'll rent a 1,000 sq ft 3 br, 1 bath cottage in Parma Heights OH, and THAT segment of the population is exploding in Cleveland. So I don't dismiss a market due to top-level population numbers. I drill down a level deeper and see how the TENANT population is trending, up or down. If that's the wrong way to think about it, let me know!
U-haul publishes an annual report that shows what cities people are moving to...also, I only invest in “red states” where I know legislation is favorable to me the landlord. Lastly, I’ve learned to always check school ratings!
Originally posted by @Joseph Pratt:
U-haul publishes an annual report that shows what cities people are moving to...also, I only invest in “red states” where I know legislation is favorable to me the landlord. Lastly, I’ve learned to always check school ratings!
Good info! Where do you get the list of "red states"?
Originally posted by @Kirsten Wolfford:
Originally posted by @Joseph Pratt:U-haul publishes an annual report that shows what cities people are moving to...also, I only invest in “red states” where I know legislation is favorable to me the landlord. Lastly, I’ve learned to always check school ratings!
Good info! Where do you get the list of "red states"?
LOL, since you don't live in the United States maybe it's not a familiar term to you. It's a reference to the Presidential election results. You can probably find a map by Googling and you'll see what he means.
Originally posted by @Joe T.:
> I would avoid any MSA that is declining in population, period.
I'm wondering if this isn't too drastic. In Cleveland for example, the population is declining by 1%. But the Cleveland Clinic is building new hospitals, which means more nurses, medical techs, ambulance drivers, orderlies - people who RENT and are in a stable industry. I don't care how many billionaires or homeless people leave Cleveland because those aren't my renters. The segment of the population that matters are those who'll rent a 1,000 sq ft 3 br, 1 bath cottage in Parma Heights OH, and THAT segment of the population is exploding in Cleveland. So I don't dismiss a market due to top-level population numbers. I drill down a level deeper and see how the TENANT population is trending, up or down. If that's the wrong way to think about it, let me know!
I agree with you, its always good to look at the whole picture. Don't forget Amazon is also building a Location in Euclid that will produce more jobs. Even though the population is going down by 1%, I haven't seen any drops in the renters department. I actually have been getting a lot of requests to find rentals lately also which I personally did not think would be the case as a Real Estate agent. From my experience so far, Cleveland had been a good area for rentals and I plan on Investing here also!
Originally posted by @Paul B.:
Originally posted by @Kirsten Wolfford:Originally posted by @Joseph Pratt:
U-haul publishes an annual report that shows what cities people are moving to...also, I only invest in “red states” where I know legislation is favorable to me the landlord. Lastly, I’ve learned to always check school ratings!
Good info! Where do you get the list of "red states"?
LOL, since you don't live in the United States maybe it's not a familiar term to you. It's a reference to the Presidential election results. You can probably find a map by Googling and you'll see what he means.
Oh, that. I thought you were talking about something like "red" for landlords. I have U.S. citizenship and only moved to Germany a few years ago. But why would you say red states are more favorable to landlords? Is landlord/tenant law seriously so obviously biased in either direction based on politics?
FYI, most people in Europe are more versed in American politics than Americans. They actually know more about almost every other country whereas most Americans can't name presidents of one or two other countries, let alone our own vice-president.
It's not an ironclad rule any more than the 1% or 2% rent rule is. But, some of the most tenant-friendly states are California, New York, and Massachusetts (my home state) which are solidly blue. The most landlord-friendly states include Texas and Arizona. Conservative states are more business-friendly, and that mentality extends to landlord-tenant relations. But it's not always the case. Colorado is blue, and they are landlord-friendly. Ohio is landlord-friendly, and they were red in 2016 but blue before that. It's just a starting point. Also note that some red states may have favorable laws, but lack other fundamentals that make it a good place to invest (e.g. population and job growth).
I don't disagree on the comment about Americans and their knowledge of the world around them, but that's a subject for another forum. For what it's worth, I did click on your profile to see your background before making that explanation. But there wasn't much info on your experience or origin so I made a guess on your knowledge.
Originally posted by @Paul B.:
It's not an ironclad rule any more than the 1% or 2% rent rule is. But, some of the most tenant-friendly states are California, New York, and Massachusetts (my home state) which are solidly blue. The most landlord-friendly states include Texas and Arizona. Conservative states are more business-friendly, and that mentality extends to landlord-tenant relations. But it's not always the case. Colorado is blue, and they are landlord-friendly. Ohio is landlord-friendly, and they were red in 2016 but blue before that. It's just a starting point. Also note that some red states may have favorable laws, but lack other fundamentals that make it a good place to invest (e.g. population and job growth).
I don't disagree on the comment about Americans and their knowledge of the world around them, but that's a subject for another forum. For what it's worth, I did click on your profile to see your background before making that explanation. But there wasn't much info on your experience or origin so I made a guess on your knowledge.
Cool, good to know! FYI, Hawaii is VERY tenant-friendly, too, and VERY blue.
Interesting report I found by Googling: https://www.pwc.com/us/en/asset-management/real-es...
Emerging real estate trends in US and Canada.
@Kirsten Wolfford- check 270toWin.com
Thanks, @Joseph Pratt!