You’ve decided to start all over. You want to sell your house and begin again, but where? When in doubt, follow big business. Yes – actually follow them.
Large corporate entities wield an immense amount of power when it comes to local economies. This can often be seen in local politics, but there is a much more global effect for an area. Simply put, the fates of communities can be based on whether a large entity is moving to or out of the area.
The classic example of this impact is Detroit. As we all know, it is home to the American automakers. When times are good at Ford, GM and Chevy, things are good in the city. When times are bad, the city can have more than a few massive problems. In the last 30 years, times have been more bad than good and Detroit has suffered for it.
The Holy Grail of real estate is to get in on the bottom floor of a market that is getting ready to grow strongly. For many people, this means trying to time the bottom of the market and they are now waiting for the bottom of the current pull back on real estate prices. The problem with this approach is you never know when the bottom has been hit. It is only after the fact, often months later.
An alternative strategy to get in on the bottom floor is to follow big business. When a large entity makes the decision to move from one location to another, it has a massive effect. A majority of the workers are going to go with the entity. This has a marked impact on the new location.
Let’s assume The Corporation – a hypothetical company, decided to move from California to Olympia, Washington. The Corporation currently has 10,000 employees. 70 percent are going to relocate. That means 7,000 people suddenly need homes in Olympia. What effect do you think that is going to have on real estate in Olympia? Yes, prices will shoot up as demand outstrips supply. If you own a home in the area, it is going to appreciate well. More importantly, this is going to create a vibrant real estate market for the foreseeable future.
So, how do you use this strategy? Well, watch for big corporations moving. In fact, I used California for a reason. The state is not business friendly, so you will often see large entities move to other states. If you are looking for a new start and want to get in on the bottom floor of a real estate market, this is a good way to do it.
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"