If you’re considering purchasing real estate, Louisiana might not be the first place to enter your mind. Many Louisiana residents are still dealing with the aftermath of 2005’s devastating Hurricane Katrina.
The unpredictable economy and increasing foreclosures across the country are also deterring many potential buyers and investors; however, those with good credit or funding will be able to capitalize on plummeting prices and a glut of eager sellers, making now a prime time to buy real estate in hotspot locations such as Louisiana.
Homebuyers will find that real estate in Louisiana is a great investment opportunity as many locations within the state have consistently seen rises in property value even in the wake of Hurricane Katrina. There are even more opportunities if you’re considering renovating a damaged or out of date home. When looking to purchase residential real estate, consider the following:
1. Location
When you’re choosing a location, don’t only consider the distance of your daily commute. Real estate located in major cities or similar desirable areas may be smaller or more costly but usually offer greater return on the investment. Even in a buyer’s market these kinds of property will be the first snapped up.
2. Cost of Renovation
Most properties, unless brand new, will require some of your own investment to create a more modern appeal and to repair any damages left by the previous owner. When negotiating, use this as a tool to lower the asking price, helping you secure a hefty profit in the future when the housing market goes up again.
3. Time
How long you plan to live on a property can make a difference on the value of the investment. Long-term dwellers will find a larger return and will have the opportunity to wait until the market is in their favor. If your stay is going to be short-term, you may even loose money on your investment during these difficult economic times.
4. Insurance
Real estate will come with one hefty price tag, and that’s insurance. Of course, the location of your property will help determine what kind of insurance and excess is necessary to cover your home, but it is always wise to be fully covered for many natural disasters or other incidents that may occur.
Not only is it a good time for potential home buyers. Commercial real estate buyers will also find a wealth of opportunities in the state. Now is the time to snap up one or many commercial properties which will expand and strengthen your investment portfolio.
Big cities, such as New Orleans, that are consistently on the rise and attracting tourists and new residents pose great opportunities for a variety of property units. Rents are also on the rise due to the rash of foreclosures, which means attracting tenants has never been easier. If you think Louisiana real estate might be for you, there are many qualified real estate agents, both commercial and residential, who can help you get started on choosing an investment opportunity.
