Buying cheaper than rent – act in the right places
BusinessWeek in conjunction with the research firm Reis, just released a report that indicates that owning is now cheaper than renting in many metropolitan areas.
The top 10 cities according to this report where buying is a bargain are as follows:
- Detroit
- Pittsburgh
- Rochester, NY
- Memphis
- Tampa
- Cleveland, TN
- Dayton, OH
- Columbia, SC
- Orlando
- Dallas-Fort Worth
(source BusinessWeek, Prashant Gopal 8-20-09)
In real estate investing the best time to buy is when the market is flooded with bargains and you can pick up cash flow rentals. However, we also want to see our purchases increase in value and not decrease in value, which is where real estate timing comes in. While this list may be great as far as properties that will cash flow, some of these markets are still seeing property values decline. If you are looking to buy a cash flow rental property doesn’t it make sense to do it in a market that is going to go up instead?
The best way to choose your real estate investments is by picking markets where the market indicators are pointing towards buying, this means the property values are more likely to go up. While you can make money from a cash flow rental property you are going to make a whole lot more money from a cash flow rental in an appreciating market.
The best way to choose these markets is by using the real estate timing market momentum charts, like the ones available at REMarketStats.