Thursday, August 16, 2007

Investing in a university or college area is a sure bet

Tonight, I want to talk about why I love to invest real estate in a city where there is a university or college in the area. The reason is very simple: It’s recession proof. Most cities ‘s house market performance is usually tied to how strong local economy, the employment rate, the average salary people getting etc. Thus, when there is a bad news about the local economy or recession comes, which almost every cities could experience some point of the time, the house market tends to fall. Also, it may become harder to rent out the property during recession. However, if I invest into city where there is a well-established university or college, I will have students coming in and out every semester or quarter and I can easily rent out my house to students. In fact, there will be more students to rent my apartment if the economy is not doing good because most of them can’t find a job and decide to go back school. Therefore, investing in a university or college area would give you a more stable cash flow for your real estate investment during the down time .

1 comment:

Unknown said...

That is absolute true, there is no reason that the government decided a university location without consideration of the development of that city.