In recent months, the ‘little chicken’ syndrome has come upon us and many intelligent people have lost their senses and think that the sky is falling. Don’t get me wrong, there are some areas in the country where I would not currently choose to buy investment property.
However, Columbus Ohio does not fall into this category in my opinion. In fact, I’d say it’s a comparatively safe bet and if you’re looking to buy cheap houses in bulk, why not do it when everything is on sale?
Why is Ohio’s capital city a safe area to invest in wholesale property?
According to PMI Group, a leading mortgage insurance and finance company with more than 30 years, Columbus, Ohio is one of the 10 safest cities to buy investment property. PMI recently released its Fall 2008 Risk Index, listing the 10 safest and 10 riskiest areas to invest in.
They ranked Columbus, Ohio properties with less than 1% chance of price drop in the next 2 years, while the worst on the list have more than 99% chance of price drop.
Also, Forbes magazine listed Columbus Ohio as one of the top 10 places to live well. This translates to Columbus being a great place to live with a lower cost of living, which in turn makes it a more attractive location for opportunity seekers in an economic downturn.
Columbus Ohio also made CNN Money Magazine’s Top 10 Cities to Live in list. Not only is it attractive for its affordability, but it is also a desirable place to live for what the city has to offer. This should be good news for homeowners and retailers alike.
So if the metro area is so good, why are there so many great deals?
Columbus has been affected by the real estate ‘bubble’ to some extent. The ongoing foreclosure crisis and falling prices have ushered in an influx of large investment deals hitting the market. This has provided the opportunity for investors to buy great wholesale deals for pennies on the dollar.
With a slim chance of a further decline in real estate prices, it would appear that we are bottoming out here in Columbus.
More silver lining in a weak economy…
Material costs are plummeting and contractors are calling for work. Therefore, any investment property purchased at a great price, especially at a wholesale price, has even more inherent potential benefits. This is due to the fact that with the shortage of materials and the desperate search for work by contractors, the cost of rehabilitating distressed properties has also come down.
Ohio’s capital city is certainly a great place to buy wholesale investment property at a significant discount. So homeowners (buy-and-hold investors), rehabbers (retailers), and just plain bargain hunters are bound to make a profit or profit.
In an age where everyone is losing money as a direct result of fear, be sure to use analytical reasoning to decide on your financial health rather than media-fuelled emotion.