5 Places You’ll Learn the Most about a Real Estate Market
How can real estate investors really find out what’s going on in a real estate market?
More new investors are getting into the game, and more experienced investors are finding they have to move into new neighborhoods and cities to get the same returns they were a couple of years ago. To make smart investment moves investors not only need to know the numbers on the deal they are looking at, but what the local real estate market is like too.
There are tons of online tools and resources at our fingertips today. Most of the best known ones are also best known for being wildly inaccurate. The numbers can lie. You can buy properties sight unseen in destinations you’ve never been to and make really good money. However, you can really lose your shirt and get stuck with dead weight that you can’t get rid of either. When you can, you want to get boots on the ground and get a real feel for a real estate destination yourself. When you do, here are five of the resources where you can learn a lot about the local market, without ever having to go online.
The Gym
Head to a few local gyms when you get in town. They will instantly tell you a lot about a destination. What gym brands are in town? How recently did they do their research and choose to make an investment there? This is a lot like tracking Walmarts and Starbucks. What are the people like when you get inside? Are there short term passes available (suggesting the area gets a lot of visitors)? If there are no gyms that may be a red flag that the area isn’t doing that well economically.
The Supermarket
Supermarkets and grocery shopping will tell you a lot too. What types of chains are in town or are moving into town? Is there a Walmart or Whole Foods? Supermarket chains can instantly tell you a lot about the strength of the local economy and whether it is a wealthier area or low income area, as well as what brands are betting on growth there. What types of foods do they have? Just the basics or gluten free, organic and more fashionable luxury items?
The Coffee Shop
Coffee shops are a great place to get the inside scoop on a potential investment destination. Are they serving fancy coffees or the basics? Is Starbucks moving in or shutting down stores there? Are there a lot of deals being made around you and people working online? Are people rushing or have the luxury of plenty of time to hangout? How much are they spending on their coffee? Talk to people and find out how they feel about the market. Are they buying, selling or investing?
The Park
If you’ve got kids the playground and park can be especially great places for some recon. Talk to other parents. Are there a lot of local activities for kids? How are the schools? How safe is it for their kids to run around by themselves? Are they finding enough house with their budget to fit their growing family into or are they thinking about moving somewhere cheaper?
Hotels
Local hotels will tell you a lot about who visits, passes through and lives nearby. They say a lot about housing costs, what type of workers are being housed there to develop infrastructure, and the features that are in demand. The hotel staff can also be a great resource for learning where the average local worker lives, how much they pay in rent, how much they make, and where they’d prefer to live.
