Got Jobs? - Great Locations To Buy Real Estate Series
http://kyegrace.com When it comes to buying Real Estate there is a cliche 'location, location, location' which while overused has some validity.
One of the components of what makes for a good location to buy Real Estate is employment and proximity to major employers.
Major employers result in population growth and stability. Often these people will want to live close to work and may pay a premium to do so.
It also brings tenants to occupy investment properties.
This adds up to stability in housing prices and the potential for above average price increases over time for that particular area.
It is not as simple as there being significant employment in an area.
One needs to look at the average salaries earned by those employed and the stability of that employment. Large facilities such as Vancouver General Hospital and the Vancouver International Airport are two that come to mind. In fact hospitals and airports are often two of the largest stable employers in many cities.
On the other hand I think one has be cautious about employers in the manufacturing and commodities industry as they tend to be more volatile and from time to time are hit hard be economic conditions leading to layoffs. In turn layoffs lead to people having to sell their homes which increases in inventory which can often drive prices down.