When a person decides they are ready to buy a home, they tend to start looking for the most they can afford in the best possible neighborhood. Alas, there is another approach.
Geography is the study of the features of the Earth and the distribution of life across it. Did you catch that last part? While geography may not be the most exciting of subjects, it can be a very important part of the real estate buying process, particularly if you think long-term.
In this country as in most, society has formed up in a very definitive manner when it comes to homes. Simply put, we start with a central point and then expand out from it. If you have lived in your current location for five years or so, particularly on either coast, you know this too be true. Where there used to be brush land or at least vacant land, there are now developments. Did you ever wonder who owned that older house out there with the 50 acres? Did you ever wonder where they are now? Sitting on a yacht somewhere!
Our society is very much a short attention span one. For those who can look to the future even a little bit, geography presents a massive profit strategy in real estate. Consider the following examples.
In Las Vegas, it is no secret that the real estate market has been growing like mad. Why? Thousands of people move to the city each year to escape taxes, retire or for whatever reason. If you visited the city 5 years ago and today, you would be shocked. It has at least doubled in size. At least! Where there was previous vacant land with no roads there are now resorts such as Red Rock on the west side of the city. If you had purchased land or a home out in this area five years ago, you would be walking around with a permanent smile today!
Along the coasts, things can be even better. San Diego is a perfect example. San Diego can only grow in one direction – east. It is limited by the ocean in the west, the border in the south and the Camp Pendelton Base in the north. As you might imagine, prices are exploding and the city is expanding far to the east. Entire communities of hundreds of thousands of people are appearing out of nowhere. Put simply, buying a home with land to far east of San Diego makes sense if you are willing to sit on it for a few years. Once again, geography is the key.
As Americans, we want things and we want them now! If you can show a bit of patience and foresight, however, you could have your cake and eat it to.