Keren and Liran Rotter - How to locate and choose an investment area? - Post 4
The United States is known to be a huge country and apart from all the countries it is made up of, each country contains dozens of different "micro markets", which depend on many factors, for example: socioeconomic profile, positive / negative immigration, areas characterized as neighborhoods of tenants versus neighborhoods of landlords, close areas For employment areas, education, public transportation, commerce, hospitals, etc.
In short, there is everything from everything so we have prepared some tips on how to start exploring an area in the tools that each of us has access to.
In total, we will need to use two web portals:
Google and City data
Our goal is to simplify for you a matrix consisting of 5 parameters that will help you locate your investment area, which over time, is expected to yield you a return.
We recommend that you build a simple Excel to check the areas, where you will enter the information according to each area.
Anyone who wants, is welcome to write in the comments and we will send him the Excel we have prepared for us.
By and large, we recommend * examining * at least 3-4 different areas / cities and then * selecting * the most appropriate one.
** Remember - everyone can fit something different, and there is no one right truth!
Come on, let's get started….
1. Population growth in
The first parameter we would like to examine is an increase in the local population. After all, we want to invest in an area where there is a * increase * in the population and not a decrease. Just type in Google: "Population growth in…"
And you will get results. We recommend relying on results from a trusted source, ie preference for government / federal sites ending in .gov.
We would like to look for cities in which the average annual increase in population is at least 1% on average in the last 10 years (in cities of 250 - up to a million inhabitants). We recommend using this link: https://www.census.gov/…/2010s-total-cities-and-towns.html (US Bureau of Statistics website)
Median household income
The second parameter is an increase in the median income of households. We would like to look for cities where there is an increase of at least 2% per year on average. About the level of the average annual inflation in the US (last 10 years). We recommend using this site: https://www.deptofnumbers.com/income
Median home value
The third parameter is a consistent rise in property prices. We want at least a 2% increase per year on average (last 10 years) - the goal is to make sure that the city does not lag behind the national level and also not to enter markets where there is a local real estate bubble. * We want a stable and long-lasting growth *.
4. Growth in the local labor market: The fourth parameter is the examination of the local labor market. We want to invest in economically strong areas and therefore we want to look for a consistent growth in the local labor market of at least 2% per year. We recommend using the website of the American Employment Bureau, which provides current data: https://www.deptofnumbers.com/employment/metros/
5. Crime rate: The fifth and final parameter in our matrix for choosing an investment area. We would like to invest in areas where the crime rate has been declining in recent years. We recommend the site: https://www.city-data.com/crime/
So after weighing all these key parameters, one can get a snapshot of more worthwhile areas for investment.
(And of course there are many more criteria, but we chose to write about the main ones in our opinion).
We repeat - there are a lot of micro markets in the US, up to the resolutions of neighborhoods and streets. Emphasize what is important to "you", and not what is important to others who said it is important… ???? Do not forget that each has different goals and a different way to act "and play the game".
Tell us in the comments which "markets" you chose to work in and why? It is interesting!
Good luck .. we will meet again tomorrow!
in the picture:
Strawberries I bought and got home in delivery, but really miss the days when you can go to the market, walk around and choose the goods yourself ????
But it turns out that everything has a solution, and you can also buy good strawberries from afar.
