Okay so i recently picked up a good real estate investing book and found this portion of the book to be pretty interesting. It essentially highlights the 12 main points, both active and passive that investors should be aware about when picking areas to invest.

Check it out!

"By removing emotions you are left with making decisions based solely on economic fundamentals which will give you a huge edge in the marketplace. If you focus on fundamentals, you will keep a level head during the markets inevitable gyrations. While others are buying and selling their properties based on an emotional reaction to a news event, you will be able to stick with your system.”

12 keys to finding a Boom or Bust town


Passive Factors – factors you don’t have control over, micro and macroeconomic forces that drive market values of property

1)Mortgage Rates

a) Lower mortgage rates will help drive values up and keep an investors expenses down, but this positive effect is offset by the increase in the vacancy rates that low rates bring. If you are flipping properties, low interest is good for business. If you are buying and renting, then a little increase in interest rates can prove to be a very good thing over the long term of your investment.

2)Increase in Average Incomes

a)If a town’s average income is increasing faster than the provincial average, real estate prices will do the same. As average incomes increase, so do property values.

b)Look for a town that will outperform the rest of the marketplace. Even if the higher values across the whole province are increasing, a town with a higher gross income increase will do even better.

c)Be aware of towns where demand is driving the values upwards while the average incomes remain flat or decreasing, this is where retirees are.

d)Focus on towns where income and retail sales are increasing at a higher rate than the provincial/state average.

Read the rest of the article HERE