The New Orleans residential real estate market is as diverse as the people who call it home. The city has an enormous range of housing options, including single-family homes, condos, apartment buildings, and vacation rentals. Neighborhoods are characterized by their unique culture and the cost of living within that community. While home prices have fallen and stabilized over the last few years, they still reflect a high level of price appreciation in comparison to the national average. If a person is renting in New Orleans, it may make more sense to spend money on a condo or buy an investment property in the city instead of moving out into more rural areas, where the cost of living will likely be higher.
1. What is Real Estate?
Real estate is the permanent, fixed, and tangible form of wealth affecting all around us. While the sale of land and real estate can be an effective method for raising money for various purposes, it is also a fact that there are many costs associated with owning real estate. Investing in real estate can prove a very costly affair, from maintenance to repairs to property tax bills. Those who wish to participate in the New Orleans housing market may do so directly by purchasing their own homes or indirectly by investing in a property already purchased by someone else. It’s also the process of managing property and tenants’ rights and responsibilities. Real estate is an asset class that can be sold or used as collateral for loans.
2. Make it Look Lived in
A property’s appearance is a significant factor in the homeowner’s monthly mortgage payment and Kelly Blue Book value. Buyers will also consider location, condition, neighborhood, and amenities such as schools and transportation systems. A property that appears lived in will have more of a positive effect than one that looks like it has been abandoned and needs to be better kept. An investment house within a residential neighborhood can hold its value if it has maintained its look.
For someone staying in a rental unit and looking to rent a property, the desirability of that property will directly impact the price they are willing to pay. Those looking to purchase real estate in New Orleans with the intention of renting to tenants should ensure that they can provide continuous upkeep to the property and be available and responsive to tenant inquiries. This will help keep tenants in your unit longer.
3. Understand the New Orleans Housing Market
Those considering a real estate investment in New Orleans will want to understand the current housing market to ensure that their investment is sound and has a chance for success. A great amount of information is available online about the housing market and real estate trends in New Orleans, from home prices to listing views to rent numbers by neighborhood. This information can be beneficial in deciding where you wish to invest and how much you should invest.
4. Consult Local Professionals
If you have very little experience visiting or living in New Orleans, you’re understanding of a good, secure property investment may falter. For example, while New Orleans is a highly sought-after destination city, some areas are statistically less safe than others. Those investing in New Orleans property will want to consult local professionals who have a better understanding of the market. Reve Realtors can help you find the best way to secure real estate investments in this area.
5. Buy in a Good Area
Those investing in real estate in New Orleans will want to ensure that they are investing in areas with reasonable rental prices and a solid rental history. Investing in an area with strong growth is an excellent way to increase the property’s value. Still, it’s also important to consider how much interest one will have in maintaining their investment if it falls a long way short of the national average.
Final Thoughts
Securing a real estate investment in New Orleans can be challenging yet highly rewarding. The most important thing to remember is that one should always buy with a long-term outlook and ensure that they have a solid understanding of the city, its infrastructure, its people, and its market.