There have been a couple of possible changes—plans change and adapt, that’s okay.
This will be a two part series. So let’s start with the first possible change.
My wife and I are open to the possibility of looking into a cheaper area than Astoria. We are also open to looking into Brooklyn (I mean, come one…who wouldn’t want to live in Brooklyn?).
I need to do some research but, supposedly, there are nice/safe areas that sell for $500,000 instead of $600,000—$750,000.
That would only be $17,500 down! That’s much more attractive than $21,000—$26,250, right?!
There are some areas that are still gentrifying whereas Astoria has already been gentrified. This would be great if I want to buy and hold for a few years (rent out to tenants) and then sell it for a profit.
Maybe your wondering, “What they heck is gentrification?”
Some people will tell you it’s when a bunch of white people move in and raise the rents. I suppose there’s some validity to that perspective but let’s not perpetuate stereotypes here.
My overly simplified answer: Young, middle class professionals begin to move into a lower income area. Investors see the opportunity because the perception of value is increasing (perception is often more important than reality). Investors begin to purchase the property. As the perceived value increases, the rents increase. Lower income families can not afford the raising prices so they are forced out of the area. Consequently, crime rates decrease. More young, middle class professionals move out there because it becomes “safe”. Consequently, the rents are raised even more. And so on and so forth.
All I’m going to say about that is…it’s capitalism and I’m a capitalist. I don’t sit and philosophize and debate…I seize opportunities.
(If you want examples of this, look at Astoria, Queens and Williamsburg, Brooklyn.)