Investing in real estate in still "affordable" locations

Lately, I’ve been keeping a close eye on the real estate market in America—thinking about potentially investing in something a bit more niche.

From what I can gather, properties in the prime spots—think Washington, D.C., the California coast, or even Florida—are becoming dizzyingly expensive. Apparently, the current trend is snapping up old stone houses in California, and in Florida, those vintage, fixer-upper types are almost even pricier now. And the prices? They just keep climbing.

I have no idea how much longer these prices will stay on this trajectory, but my gut tells me the best move is to find an opportunity while things are still somewhat affordable. That leads me to the idea of looking at locations that are still relatively "cheap." For instance, I think the Appalachian Mountains hold incredible potential; prices there haven't hit the stratosphere yet. A small vacation home or a cabin in that beautiful mountain range seems like a compelling play. Then, there’s the proximity to places like Yellowstone National Park—areas near Boise or Denver.

Here are a few examples of what’s currently on the market in the Appalachian Mountains and Colorado:

http://www.info-lokacija.com/servlet...1&language=cro
http://www.info-lokacija.com/servlet...1&language=cro
http://www.info-lokacija.com/servlet...4&language=cro
http://www.info-lokacija.com/servlet...4&language=cro

Just to get a discussion going: what are your thoughts on these areas? Does it make sense to invest in a smaller property or perhaps some land in these regions? Do you see long-term growth potential here, or does the whole idea sound a bit crazy?

The Appalachian Mountains are criminally underrated right now. It’s where you want your money to be. If a bid for the Winter Universiade ever actually gains traction around here...

If you actually have some extra cash lying around and feel like gambling on real estate that might actually appreciate, I’d tell you to go grab some land out in the Midwest.
Once they fully integrate into the global market, prices are going to skyrocket, so now is probably the time to snag some decent plots while they're still dirt cheap.
You could even lease the land out to local farmers to make a little something while you wait for the value to climb.

Gary Cox72 said:Lately, I’ve been keeping a close eye on the real estate market here in the States—mostly because I'm thinking about putting some money into something a bit smaller scale.

From what I can tell, properties in the hottest spots—think Washington, D.C., the coastlines of California, or down in Florida—are getting absolutely ridiculous. It seems like everyone is chasing those old stone cottages out in California, and honestly, even the fixer-uppers in Florida are hitting crazy price points now, with values just climbing higher and higher.

I have no clue how much longer these prices can keep skyrocketing, but my gut tells me the smartest move is to jump in while things are still somewhat reasonable. So, I started thinking maybe I should look at areas that aren't quite so overpriced yet. For instance, I think the Appalachian Mountains could be a goldmine—prices there are still pretty accessible. A little vacation home or a weekend cabin in that beautiful mountain scenery sounds like a killer investment. Plus, I was thinking about how close some of these spots are to places like Yellowstone National Park—you know, near Boise or Denver.

Here are a few examples of what’s currently on the market in the Appalachians and Colorado:

http://www.info-lokacija.com/servlet...1&language=cro
http://www.info-lokacija.com/servlet...1&language=cro
http://www.info-lokacija.com/servlet...4&language=cro
http://www.info-lokacija.com/servlet...4&language=cro

Just wanted to get a conversation going—what do you guys think about these areas? Does it make sense to invest in a smaller property or even just some land in these spots? Do you think these regions have real growth potential down the road, or am I just dreaming?

That’s a great question! You definitely have to tread carefully, but honestly, if you're playing it safe with a smaller amount, even if it doesn't pan out, you aren't losing your shirt.
The trick is really trying to sniff out the actual potential of the area, because at the end of the day, it’s all about location. Just because the country moves toward certain economic shifts doesn't mean every single corner of it is going to see a boom in property values. Back in 2002, I spent time road-tripping across 12 miles the US in my own car and saw a whole lot of different things. If a region lacks real pull, even being in the middle of the famous USA won't save it from stagnation!
Location is everything, even over here. Anyway, I really hope you find the right spot! 😉

There isn’t really a single, definitive answer to this question
The specific mikrolokacija makes all the difference.
Regarding the Appalachian Mountains, I recently picked up a plot of land out there for a steal. If luck stays on my side and my health holds up, I should have my building permit finalized in about four or five months. It’s a relatively modest investment, but I’m confident it will pay itself off within seven or eight years—maybe sooner—provided I lean into the tourism angle. Now, if I were just looking at the buy/build/flip cycle, the returns would be
faster, but I’m viewing this as a long-term play; I want something that eventually generates steady, passive income.
I just hope I don't end up stuck working on it forever. Though, honestly, I’m certain 🙂

Well... if only I had a bit more capital to work with.

Angela Richardson15, I thought you were planning on building right by the coast... or are you trying to have it all?

I’ve had a change of heart too. Once this place is finished, I’m not selling—I'll be renting it out instead. But that's a problem for future me. Right now, construction is at a standstill because someone decided to take a vacation.😲

I’ve been sitting here wondering how things are going to shake out with the whole European Union integration process, specifically when it comes to the rental market... if everything gets properly legalized and everyone actually starts paying their fair share of taxes, I can't help but think there might not be much left over at the end of the day.
I'm genuinely curious to hear your thoughts on where we're headed with rentals—you know, the balance between actual profit and what you end up handing over to the government in taxes.
What does the rental landscape actually look like across the rest of the European Union?

coastalviper8 said:What’s the rental landscape looking like across the European Union?

In Italy, if you're signing a lease, you'll most likely be dealing with an agency—there are plenty of real estate firms that specialize exclusively in rentals.

When a lease is signed, landlords typically demand at least two months' rent upfront—sometimes three. It serves as a security deposit in case of property damage or similar issues. Additionally, the contract specifies the minimum notice period required for either party to terminate the agreement. Essentially, there's protection on both sides; the tenant won't just walk away without notice, and the landlord can't simply throw someone out onto the street when they decide to change things up.

If a tenant decides to move out before the term expires and neither the agency nor the landlord can find a replacement, the owner is entitled to keep the entire deposit (those two or three months' worth). These notice periods usually range from three to six months.

As for taxes on rental income, I don't know the exact figure, but I'd assume it sits somewhere around 20-25%.

I don't need the European Union breathing down my neck to tell me how to be an honest person.
Whether they're around or not, I have no intention of dodging my taxes. Besides, the tax on rentals isn't even that steep.

coastalviper8 said:I’m really curious about how things might shift with us joining the European Union... if renting becomes fully legalized and everyone starts paying their fair share of taxes, I wonder if the profit margins will just vanish altogether...
I’d love to hear your thoughts on the future of the rental market—you know, in terms of actual earnings versus what goes to the government in taxes.
What does the rental landscape actually look like across the European Union right now?

Honestly, even now, the tax on apartment rentals feels pretty ridiculous—it's basically 15% on 70% of the base plus local surcharges—so I don't quite get why landlords would take the risk of renting under the table in the first place. I guess it's just that old habit of feeling like you always have to try and outsmart the government when it comes to taxes.😈

urbanranger18 said:The rental tax is already pretty ridiculous as it stands (with that 15% rate on a 70% base plus local surcharges), so I don't really grasp why landlords would even bother risking it all by renting under the table. I suppose it’s just that ingrained habit of feeling like you always need to screw over the government when it comes to taxes.😈

That really depends on the individual, I suppose. The tax itself isn't even the primary issue... in some cases, tenants specifically request not to be registered for various reasons, among others.

Richard Edwards10 said:I don't need the European Union breathing down my neck to make me act like a decent, honest human being.
Whether the EU is around or not, I’m not planning on dodging my taxes. Besides, the tax on rentals isn't even that bad.

😁 😁 😁 😁 😁 😁 😁
Oh, absolutely—anything I can rent out under the table, I am.
If a client explicitly asks for a receipt, then fine, I'll play by the rules and keep everything above board.
For properties where I have a steady rental income, I just report a lower amount and pocket the rest in cash, and about 75% of the time, those hostel rooms go strictly off the books.

Richard Edwards10 said:Richardson15, I thought you were planning to build near the coast... or are you doing both?

I've had a change of heart as well; once this is finished, I won't be selling, but renting it out instead... though that's still a ways off—construction is currently stalled because someone is on vacation.😲

Not by the coast. I simply don't have that kind of capital yet.😁
Serious cottage renters in this area where I'm building saw occupancy rates between 100 and 120 days this season. That is an entirely different clientele than those who fill up beachside apartments, and frankly, beachfront rentals can't even dream of seeing that level of consistency.
But this is a very specific location—9.3 miles away from the ocean, yet with a climate identical to somewhere like Aspen. Plus, there's the matter that we won't be able to build legally here for a year or two, as a new zoning plan was just passed which will soon mandate the implementation of Universal Postal Union regulations for this district—a process that takes time.
Am I becoming increasingly certain that I've made the right move with my savings?🙂

Angela Richardson15 said:Not by the coast. I simply don't have that kind of capital yet.😁
Serious cottage renters in this area where I'm building saw occupancy rates between 100 and 120 days this season. That is an entirely different clientele than those who fill up beachside apartments, and frankly, beachfront rentals can't even dream of seeing that level of consistency.
But this is a very specific location—9.3 miles away from the ocean, yet with a climate identical to somewhere like Aspen. Plus, there's the matter that we won't be able to build legally here for a year or two, as a new zoning plan was just passed which will soon mandate the implementation of Universal Postal Union regulations for this district—a process that takes time.
Am I becoming increasingly certain that I've made the right move with my savings?🙂

I'm actually planning to build a vacation home in Boulder, a two-story place for six people. I already own the land. I was wondering if you have any advice... If you're already in the game, are you really seeing over 100 days of occupancy? I found a house near a pond that has over 250 days of occupancy!!!

Real estate in Colorado isn't cheap... which is exactly why nobody's buying it.

The only people capable of driving prices up are investors looking for a quick buck or folks who actually need a roof over their heads. But if you go out and buy property in some crappy part of Colorado? You might as well throw your money straight into the trash. Seriously. You go out there, get stuck in the mud, and end up using a handful of weeds to wipe yourself off because everything else is a mess. Now, if you actually have a vision—say, picking up 20 or 30 acres and trying to build a legitimate agritourism business—you might actually pull it off, provided the location isn't total garbage. People like that aren't going to be paying $110 per square foot.

But if your grand plan is just to flip houses for a profit? Honestly, I think most of you are in for a massive disappointment.

Gerald Thomas11 said:The Appalachian Mountains are criminally underrated right now. It’s where you want your money to be. If a bid for the Winter Universiade ever actually gains traction around here...

This is absolute nonsense. In ten years, we won't see any snow around here at all. And even if we do? There is zero chance of hosting an Olympics in the Appalachian Mountains—which, let's be honest, is way too expensive anyway!

Gerald Thomas11 said:The Appalachian Mountains are criminally underrated right now. It’s where you want your money to be. If a bid for the Winter Universiade ever actually gains traction around here...

Yeah, right! Let's just wait until we actually join the USA first! 🤣

Investing in real estate just to make a quick buck? Honestly, I don't see the point. There are way better ways to grow your money out there right now.

But buying a place just to have a cozy getaway or a spot to relax? Now that's an investment I can get behind!