How to Pick the Ideal Location for Investment Properties

A great location will ensure that you have an easy time attracting renters and give you high financial rewards. Although people will have a different definition of the best location, a great investment location should appeal to your target market and be profitable for you. In this chapter, you will learn about picking the best location for your investment.

Real estate investment is like any other business. Therefore, demand and supply determine your profits. The ideal business should offer something that everybody wants or needs (high demand) and what it has to offer should not be easy to replicate (limited supply). A real estate investment can only be successful if the tenants have good jobs. Understand the job market of the area. Consider the following:

• The number of jobs; is the number increasing or decreasing?
• The median salary; is it increasing or decreasing?
• The types of jobs; low-paid laborers, high-tech or professional?
• Diversified jobs; a stable variety of job sources or 1–2 main industries?

Population Growth

People are always moving to locations with better jobs. They are also attracted by things like natural attractions, weather, local politics, and the price of housing.