Gloucester Investment Properties
Gloucester is a well known fishing-oriented city in northern Massachusetts that also has a thriving population of 29,798. Famous for its large stock of pre-World War II architecture, the city is an excellent place to live on the North Shore. In addition to fishing, the city also has a high population of mathematicians and computer scientists as well.
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Residential and Commercial Investment Properties
This city has a good mix of property types, meaning that there are plenty of opportunities. It's just important to understand that you understand precisely what's available in an area like this so that you can make accurate estimates on returns and capitalization rate. Here are some of the types of investment options that you'll be able to select in the city:
Single-Family Properties
- Rental – If you're looking for steady income, renting a purchased home is a great idea. Not only will the rent help pay down the mortgage, but renting out a home like this seldom requires much in the way of maintenance. It's common to expect that about five percent of the annual rent to go towards property upkeep.
- Sales – Home ownership is the dream, and when you're investing in properties to sell them, in many situations, you'll want to upgrade the property in order to force appreciation rates and sell the property at a higher amount. This can be a very cheap way to invest while also making a good profit.
Multi-Family Properties
- Duplexes – Duplexes, triplexes, and quadplexes are typically rental properties that have a multi-level design. On each level is a different tenant and sometimes these properties have common areas like the basement and stairwells.
- Apartments – Typically, an apartment building or complex has more than one unit per floor. Tenants who live in these units can sign one- and two-year leases that can be extended.
- Condos and Townhouses – With these types of properties, the tenant owns the unit. With these, you can own the greater building lot, but you can also make a good profit selling the property on a unit-by-unit basis. When it comes to configurations, condos are similar to apartments, and townhouses can be like duplexes, except these units are typically separated by a wall rather than a floor.
Commercial Properties
- Office Space – With this kind of property, you'll be renting to small businesses and startups. This property can yield additional income via maintenance costs and real estate taxes, which you can pass on to the tenant.
- Retail Space – Storefront property is valuable, and one of the best features of this type of commercial property is that the leases can be five years or longer.
Real Estate Market Overview in Gloucester Neighborhoods
This coastal city has a fairly large share of nine different neighborhoods. Most of these are suburban, and the majority have some part touching the ocean:
- Bass Rocks
- Annisquam
- Riverview
- Magnolia
- Heights at Cape Ann
- Centennial Avenue
- Five Pound Island
- City Center
- Maplewood Park
With the exceptions of Five Pound Island and Maplewood Park, the majority of neighborhoods in this area have a significantly high rate of vacancy that typically is over 10 percent. This is actually decreasing and the town has home values that have currently gone up 7.2 percent in the last year.
While home values tend to fluctuate from neighborhood to neighborhood, the median home value across the city is $448,000. The city is experiencing a market that's currently leaning towards the buyers' end of the spectrum, but with a relatively close range of 39 miles to Boston, this market will certainly shift as the city continues to grow.
When it comes to the overall market, this town has a good mix of both owner-occupied and for-rent properties. Owned single-family units make up about 63.6 percent of the market and about 36.4 percent can be attributed to renters. This means that this city has opportunities for both types of property investment and with the homes at a relatively low cost and the average market rent being around $1,711 a month, there's definitely some opportunity for investment in town.
Choosing the Right Investment Property
This city is an excellent place to live, especially if you love the ocean, and you'll definitely find that the real estate and rental prices in the area are very reasonable. Finding the right property for you will be a subjective experience. Do you have the patience to wait for a multi-unit to appreciate in value, or do you prefer to make a quick flip and make quick money? If you're not sure where you stand, give us at Boston City Properties a call at 617-247-1933 or contact us on our site; we can help you find the property that best fits your needs.
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