Are you planning on buying investment property in the Central Valley for the first time? If so, you’ve come to the right place!
The Central Valley is one of California’s best kept secrets because it’s a great place to buy rental or investment property since real estate here is often priced lower than other locations in NorCal or Southern California.
In this article we will share with you signs to watch out for when buying investment property in a new market.
Job Growth Compared To Vacancy
We look deeply at the job growth of an area and compare those figures to the local vacancy rates. When you can find an area that is growing without an oversupply of rental homes, it is in most cases a good indication of not only fewer days on market, but also potential rental rate escalators. – Mike Tamulevich, Marketplace Homes
- Standard Local Market Demographics
When we get an investment financing request in a new market, the three local market demographics we focus on are appreciating versus depreciating neighborhoods, school ratings and crime ratings. While we also look at household median income and access to jobs, those factors can be harder to compare from one market to another. School rankings and crime rates are easier to compare on a national basis. – Beth O’Brien, CoreVest Finance
- Economic And Population Growth
An area that is growing economically, in population or even just in demand as a destination will offer far better chances for appreciation. The fastest appreciating areas are those that have been recently “discovered,” that many people now desire and often where there is a backlash against further growth. “Nimbyism” has a lot of downsides, but price appreciation is not one of them. – Sean O’Toole, PropertyRadar
- Major Retail Trends
A few of the indicators I look at are what retailers are existing and what new ones are coming to the market. If it’s a new development, I validate with the actual retailer to make sure they are coming. Do your homework. Another great resource is the local building department, where you can learn what stage a development is in and if they have actually submitted their plans.
Get Propety Management Here
For property management in the Central Valley contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.