Massachusetts may be one of the smallest states in the United States, but what it lacks in size it makes up for in population. This state benefits from a great economy and is one of the most developed places in the States in terms of scientific development, education, culture, and technology. However, every investment brings a certain level of uncertainty. Here is a quick guide to help you decide if investing in Massachusetts is the right move for you.
Why You Should Invest
Besides the fact that Massachusetts is rated as the 8th overall best state in the nation, it also places second in healthcare and education. It is home to many reputable colleges and universities, including Harvard, and it is rich with culture and history. When it comes to real estate, naturally there is a lot going on too.
Massachusetts has a higher percentage of homeowners compared to renters which could be largely due to the rental and mortgage costs being similar in many areas. The median cost of rent is higher than the national average. This, coupled with a rise in property value, makes owning a home more attractive to people living in this state.
Though overall low, Massachusetts has a high, and increasing, rate of foreclosure and this offers investors the chance to buy a home for a cost-effective price. Foreclosed properties are attractive due to their below market value and a savvy real estate investor can renovate these properties and make big returns.
Fix and Flip Opportunity
Reality TV shows have managed to glamorize this strategy, but a lot of hard work and capital are needed to go down this route. The conditions of foreclosed properties vary extensively which could result in costly renovations.
An inexperienced investor could end up wasting time and money on this type of investment. Before investing, a real estate expert should be consulted and research should be conducted into the value of similar properties in the area and the estimated cost of repairs. Even with high-level expertise, home investors are faced with the issue of raising enough capital to fund this type of project. Fortunately, some private lenders offer a private money loan as a flexible and fast solution. Bridge loans and foreclosure loans are popular options that can provide immediate cash flow for investors.
Choose the Right City
The Bay State has many coveted markets to choose from, with Boston making it to the top of the list. With a mixture of culture, urban attractions, and a good economy, Boston home values are higher than average and on the rise. Close by is Cambridge, home to Harvard University and the Massachusetts Institute of Technology (MIT). Cambridge boasts a steady economy and a below-average unemployment rate, while Chelmsford and Braintree were voted as two of the best places to live in the U.S. Choosing the right city comes down to budget, personal preference, and opportunity. Although Boston may be the go-to destination, and for good reason, there are plenty of other options to suit different budgets.