Browsing: markets

Market Trends, News & Commentary

02c General Hospital - Entrance (E)Many landlords are attracted to markets with a large institutional presence because they offer stability. Hospitals, universities and government agencies rarely make major cuts in employment, and they very rarely close. That means your prospective tenants are not likely to leave.

This also used to be the case for military bases. Years ago, career soldiers could build very comfortable nest eggs by buying a home in every base where they were stationed, and keeping it when they were transferred. They would always be able to find other soldiers to rent their homes. That’s changed to some extent because of the number of base closings over the last couple of decades. However, the largest bases will remain active for many years.

Are these markets really stable?

Big institutions almost never make up more than half of the employment in any market, meaning those markets are still subject to other private industry employment losses and gains.

Market Trends, News & Commentary

Should you follow everyone and invest in the hot appreciating markets the media and everyone talks about?

The media has a much different approach in that they look at hot markets speculatively as ones that will appreciate, our approach is much different. I previously wrote on the topic where to invest and identified many smaller cities, the Midwest and OH as areas that hit on all 4 of my criteria: Little chance of depreciation, lots of available deals, low competition, multiple exit strategies.

Here I will identify specific cities that have an oversupply of opportunity for savvy investors, using the PMI U.S. Market Risk Index that I talked about in that previous post.