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Loading ...The answer to the question is yes but not always. Due to the housing crisis, there have been many stories of investors making a healthy profit out of buying distressed properties at bargain prices and reselling these houses at higher prices. Landlords are also lowering rents to attract more tenants.
However, if you are a homebuyer or a tenant, the best investment will be still be in neighborhoods where you will be assured of gains which you and your family will benefit from for a long time. This may not always mean a bargain foreclosed home, but a secure housing investment which would not compromise your safety.
Homeowners and tenants need to assess the home’s risk before moving in. Despite low costs, the ultimate gauge would still be to live in a stable and safe community with decent schools and neighbors, and adequate services.
The best areas for this are those that experience less foreclosures and with residents of above-average income. Before one makes that buy or signs that lease he should take into account the chances of his preferred property’s value depreciating. A few things to take into account would be:
- The number of homes in the risk of foreclosure
- The number of homes which have actually been foreclosed
- The average home price and whether it is increasing or decreasing
According to economic experts, the best places which might have better growth and value would be in the lower-priced areas – San Antonio, Austin and Dallas in Texas; Jackson, Mississippi and Pittsburgh are examples of these. Some analysts also say that there is less risk to invest in Albuquerque; Bridgeport-Stamford, Hartford and New Haven in Connecticut; Bethesda-Gaithersburg, Maryland; El Paso, Texas; Edison, New Jersey; Honolulu; Boston, Essex County and Worcester, Massachusetts; New York/Nassau-Suffolk county; and Seattle. Those more likely to be in a housing slump and experience more foreclosure problems are Las Vegas, Phoenix and South Florida.
