Unlike other investment alternatives, Real Estate is a Physical Asset Class. A tangible asset such as a piece of land, apartment, or condo can never disappear, thereby leading to fraudulent practices. You can always do your Due Diligence and know for sure if your “to be added” investment in your portfolio exists.

“Buy land, they’re not making it anymore.”

                                              – Mark Twain

Our all-time favorite American writer and humourist rightly predicted the state of depleting available land space. With the given amount of land and a constant rise in the population, a situation is bound to rise- Scene of Scarce Availability of Land.

Now, if you are ready to invest some of your resources in Real-Estate syndication take care of the following factors before finalizing a market location.

1. Median Income Growth
2. Job Growth
3. Population Growth
4. Tenant/ Landlord Laws
5. Cost of Living
6. Crime Rate
7. Local Government
8. Price to Rent Ratio

Median Income Growth-

Median Income Growth implies the standard of living in a locality. A 30% growth in the last 15 years is considered ideal. It conceptually determines the economic growth over the distribution of a few years. You would not want to invest in a stagnant location, where the prospects are almost negligible. 

Job Growth

New residents are likely to move in a location with upcoming projects and new businesses. An upward scaling trend of Job Growth indicates a healthy, steady, and flourishing living location.

Population Growth

It may seem weird at this point but you should opt for locations with increasing population growth. But aren’t they going to be crowded? The answer is NO! Population Growth is indicative of diversification and housing units’ modifications and improvements. It is the key to urbanization which in turn leads the way to incoming residents.

Laws

Nobody wants to get themselves into petty landlord/tenant issues. Residents prefer a location with liberal and friendly landlords. Investing in such neighborhoods is a smart resort.

Cost of Living

Location with a low cost of living in comparison to median income growth is preferred because a steady growth is expected in the coming years. With everything becoming expensive people tend to look for neighborhoods with cheaper living costs.