In Depth Market Analysis

Rate of Artificial Inflation

In the past 2 decades, values soared above a sustainable value all over the Country. These areas may need another decade to decrease the current assessment to their true market value. Some areas did not realize as much artificial appreciation and still have a slow and steady growth rate.

Income Multipliers - Income Production / Cash Flow – Capitalization Rate

The goal is to find a property that produces at least 25-35% more than the proposed monthly expenses. Solid monthly income will allow an investor to hold property until the market can recover or appreciate.

Financial Incentives- Special Lending Programs / Concessions

Many States inject funding to assist 1st time homebuyers and qualified applicants to assist in the purchase of a home. Although this is artificial stimulation, if the State plans on keeping the program alive and that State still operates within budget, this can help towards overall value.

Industry / Job Growth

Very few States are capitalizing on industry and job growth. When you mix lower wages, tax incentives, transportation and reasonable property value, huge returns are a good possibility. The more jobs you are producing, the more buyers and renters you have.

Unique Attractions / Tourism

Landmarks and major attractions bring great stability and growth to the local economy through investments in commercial, cultural and conference centers, visitor centers, recreational facilities, utility service sites, employee housing, open space and conservation areas .

State Tax Incentives - Corporate Incentives / Sales Tax / Property Tax / Go Zone

States that offer tax incentives to lure big business usually have a tremendous opportunity for overall growth and strength in the market.

Transportation – Growth / Access / Ports / Supply

This commonly overlooked value is a clear indicator of future growth. A good supply of major transportation routes with growing industry can multiply over time, bringing substantial growth and value to any market.

Supply / Demand

Supply and demand should be calculated over a period of time to view the patterns of marketed properties beyond a simple MLS search. New construction, while refreshing the area, can slow the balancing of older homes that remain dormant in the market. Foreclosures must be judged individually and in the entirety of the market to understand the impact on valuation and market trends.

Retirement Attraction

According to the National Association of Realtors, people over 55 bought 21 percent of the homes that were sold in 2008. Areas the attract, market, entertain and service retirees will guarantee a stronger value in the future real estate market.

Education System – Renowned Colleges / School Systems / Private Options

High performing schools are always a driving force in the real estate market. You can expect sustained value and growth in areas that offer better education.