We asked a panel of Forbes Real Estate Council members what aspects of a property or neighborhood they would consider a sign of positive investment potential. Their best answers are below.
1. It’s Located Near A Big Tech Company HQ
The people working for big tech companies like Google, Amazon and Facebook are pretty safe, employment wise. They will be here a while, unlike certain motor companies that do not innovate or outsource. Those tech employees need to eat, play and sleep. By buying properties in the areas these employees work, you will be in a great place to cash in off their success and longevity. – Chris Ryan, BEYOND Properties Group
2. The Neighborhood Is Walkable
We work with some highly analytical real estate investors who are using “walkability” as a solid means for determining investment potential. Walkability means combining factors like metro/transit access, bus stops, retail/shopping and parks and assigning a score to a neighborhood based on how close or walkable these amenities are. If a neighborhood has a rising walkability score, it’s a winner. – Daniel Huertas, Washington Capital Partners
3. It’s In Close Proximity To A Hot Market
Once a neighborhood is in high demand, prices will increase and start to push people to the outer lying areas. Especially in big cities, buyers start to look to areas within close proximity where the prices are still lower. People tend to overlook these areas until they are already very popular, but getting in early is the key to the best investment opportunity. – Beatrice de Jong, Open Listings (YC W15)