One of the major sources of wealth creation in real estate investment is appreciation. When property gains value during the period that it is held by the investor, the increase goes directly to the investor. This is the power of leverage. Wouldn’t you want or maximize your chances of appreciation when purchasing a property?
Most real estate investment books, seminars, and course recommend buying properties near your home. While this certainly has its merits, the astute investor should the outside of the box.
What if a stock advisor recommended that you other purchase stocks that had a ticker symbol that started with the same letter as your name? Does it make sense to limit your investment potential in this way?
Consider expanding the geographical boundaries of where you are willing to invest. There are many metropolitan areas to look at, and not all are created equal. Each has their own economies, laws, geographies, and population which can contribute to the appreciation potential of your investment property.
Of course, selecting a good property manager is key to trusting your investment which may be distant from your home.
Investing in real estate away from your home also presents a great opportunity for travel. A visit to search for property, or to maintain an existing property may be tax deductible. Why not have some fun while investing in real estate? Almost every metropolitan area contains some great places to visit, relax, enjoy or just hang out. Make sure that your locations that you invest are places that you want to visit. A passion for real estate is further fueled by the desire to travel. Consider what is nearby your investments. Nice restaurants? Relaxing resorts? Theme park fun? Maybe a brewery or winery? Ski slopes or beaches? Casino action? Stunning national parks? Sporting events? Trendy art galleries? Entertaining festivals? When selecting your boomtown, make sure it is a place you want to visit, and maximize the personal value of your investment travel dollars.