Alaska real estate - a good investment?
I'm talking about Anchorage and area. I've been thinking about investing in US real estate for a while (I'm not American) and AK seems like a great place to start - I've searched and found some very nice and cheap houses (3+ bed. for like 150K). Anyway, how did the crisis and global recession affect the AK real estate market? Is there a lower tax on real estate there? How hard is it to find renters?
Answers & Comments
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The houses that are easy to sell in Alaska are the starter homes. Unless you plan to live in Alaska, I wouldn't recommend becoming a landlord, as you will have to pay for repairs rather than do them yourself, and if you aren't there to check on things you may end up with renters who damage your house.
The recession is affecting Alaska.
The rules in real estate are the same everywhere. Try to buy something that's undervalued. Location is everything. Be able to make the payments if the house has to stay empty because you can't find renters.
To find out what you need to know, call Anchorage real estate offices, call the State of Alaska Department of Economic Development and ask for statistics on housing vacancies (rentals that go unrented, houses that go unsold), and call the Alaska Department of Labor for information on how the local employment and economy are doing. Call the Municipality of Anchorage for information on property taxes.
A house at a cheap price may be a good deal, or it may be in a really bad neighborhood, with crack houses and not near any good schools or shopping. You will want to come to Anchorage and ask a lot of questions before spending your money.
Good luck on your business venture. I hope you find something good somewhere.
Times are tough in Alaska. It would be better to look somewhere in the "sun belt" because that is the area where real estate values has been increasing for some time.