The Ohio real estate market has been attracting more attention in recent months, but what are the real pros and cons of investing in this particular area? Should San Diego investors consider the Ohio housing market?
While certainly not on the same level as Fairfield, Connecticut or San Diego, California; Ohio has become a focal point for many aspiring investors. Real estate, in this part of the country, has caught the attention of those actively participating in the housing sector. Of particular interest, however, is the state of Ohio’s market. Is it really as great as it has been vaunted or are there some concerns surrounding it?
Primarily due to its less expensive real estate and foreclosures, Ohio has been placed on a pedestal above other housing markets. Investors are becoming more aware of the opportunities being made available to them. So is the hype warranted? More importantly, is it worth looking into as a potential investing region?
4 Pros of Investing in Ohio Real Estate:
1. Inventory
Following a little preliminary research, real estate investors may be incredibly surprised to find out that Ohio has a significant amount of distressed properties on the market. Third quarter data shows a huge percentage of residential foreclosures compared to other states. On a national level, residential properties make up only a small portion of REOs. The opposite is true for Ohio. Furthermore, there are many billions of dollars in non-performing properties that are ready to be had by investors.
2. Less Competition
While Ohio is certainly attracting more investors, the ratio of investors to distressed properties favors the savvy. There is less competition because of the amount of distressed properties on the market. This suggests more breathing room for real estate investors and more power to negotiate deeper discounts.
3. Cheap Property
Compared to places like San Diego, San Francisco, New York, Miami and Connecticut; Ohio certainly boasts some very inexpensive property. While REOs and foreclosures can often be misleading, they can appear to be an appealing option for those feeling like they are priced out of their local markets.
4. Increasing Attention
As mentioned above, Ohio is getting more attention. As the housing market continues to improve across the U.S. and homes get more expensive, investors will be drawn to areas like Cleveland and Columbus in search of properties with lower price tags. The Ohio market has already seen sales figures soar. As the snow thaws in spring, expect the market to pick up even further.
4 Cons of Investing in Ohio Real Estate:
1. Distance
Investing out of your area isn’t always a bad thing, but it isn’t automatically more profitable either. Do the math carefully before leaping. Remember, the distance between you and your property makes it more difficult. Take this into consideration before investing out of area.
2. Accountability
Long distance investing is associated with several complications that local investors don’t have to necessarily worry about. San Diego investors thinking about investing in Ohio must know the history of what they are buying, the nuances of the local market and need to somehow keep an eye on the progression of their project. This is more difficult from a distance. The best way to get a feel for a property is to be there physically.
3. Economy
While Ohio has been sending emissaries as far as China to round up investors and capital, its economy probably isn’t as hot as other states. Cheap property is good, but this is only relevant in conjunction with actual affordability and jobs. It is certainly a warning flag for anyone considering investing in this area.
4. Limited Appeal
Ohio has a significant population, but its limited appeal as a destination could definitely work against it in the long run. Who do you know that wants to move to Ohio? Is it cooler to invest in Cleveland or San Diego? This is just something to take into consideration. A lack of appeal will make it more difficult to sell a property.
