Long-Term Real Estate Picks
Real estate news By Jennifer Openshaw TheStreet.com Contributor
3/9/2007 1:40 PM EST
Like most Millionaire Zone investors, you invest long term.
You like real estate because it has a solid long-term, fundamentals-based
track record over the long haul.
So why does every real estate forecast you read only take
you through the end of this year or 2008 at the latest?
Short-term forecasts are nice -- especially if you're a
real estate agent -- but as a real estate investor, I like
to look at the longer term. I know my crystal ball can't
forecast interest rates much better than anyone else's.
And that makes predicting specific prices say, 10 years
down the road, a real stretch.
So I won't do that. But here's what I can do: I can predict
which residential markets are most likely to see strong
and sustainable growth over the next decade. My crystal
ball, which employs metro-area facts and figures I recently
obtained from industry expert Bert Sperling, combines several
factors across some 375 U.S. metro areas: Future job growth.
To me, the long-term job picture is key to real estate and
especially investment real estate growth. My picks have
at least a 20% projected future job growth through 2010.
Affordability. Picks should have modest prices relative
to local incomes. I eliminated areas with median home prices
more than five times median household incomes, and areas
where median home prices exceed $250,000.
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