Location, location, location…the real estate 101 catch phrase we’re all familiar with, if not engrossed in.
Why is location so important, though?
Practically every aspect of a home can be altered or changed with enough money, time and resources, except location. Even the most serious of home defects, such as foundations, structures, roofs or new electrical systems can be fortified, updated, replaced or repaired.
Then what determines a locations desirability?
If you’ve ever owned a home, you might understand how your neighbor’s home, the foreclosure down the street, city school systems, tax funding, and new development impact your home’s value. As many additional aspects also contribute to desirable locations and home values, these main components lead most people to avoid all properties in certain locations. Some people know so much about a location that they don’t even realize they missed a diamond in the rough because they failed to explore or reach outside of their single strategy.
Ready for one of the best kept secrets in the real estate market that the wisest investors don’t want you to know? You can make money in any location, through smart investments, by applying the correct strategy to the current market cycle.
What do you mean? What is a market cycle strategy?
Almost every aspect of investing (e.g. stocks, bonds, real estate, etc.) have market cycles. Within the real estate market specifically, there are common cycle points, often referred to through different names, including: Peak, Early Downturn, Full Downturn, Bottom, Early Recovery, Early Stable, and Late Stable. Check out the graph from Creonline.com below for a visual of what these mean.