Salem Investment Properties

Salem is perhaps one of the most well-known areas of Massachusetts due to the famous witch trials, and today's community has grown into one of largest cities in the state. With its population of over 43,000 people and status as part of the Boston Metro area, the town has garnered marked interest from investors. In fact, the housing market in the area is considered "hot," and the property values in the area have increased by almost eight percent in the last year alone, and are expected to increase by at least that much in the next. As a result of this, now is a good time to invest in both residential and commercial properties in the area.

Click Here to Search Investment Properties

Residential and Commercial Investment Properties

One of the first things that you may notice about properties in town is that prices are very reasonable, especially when compared to other towns in the Boston Metro area. The median price for a single-family home in this town is around $369,000, so now is a good time to purchase properties.

Additionally, this town is also a rare exception in the Boston area; instead of the usual market where single-family properties make up a sizeable portion of the market, this town's percentage of these types of homes only accounts for about 26 percent of the residential market. In fact, small apartment buildings represent almost 40 percent of the market here. When it comes to commercial properties, the market is fairly rich with opportunities for both retail and office space investments due to the fact that this is a fairly urban city.

Not sure which type of investment is for you? Let's take a look at each type in a more in-depth way:

Single-Family Properties – When we think of rental property, there's a tendency to think of multi-family homes, but rental single-family properties are becoming increasingly popular in towns like this. Not only do these homes not require a traditional mortgage, but due to the fact that they are rental units, things like maintenance and repairs falls to the owner rather than the occupant, which benefits the renter.

Despite this burden on the investor, these types of homes are typically inexpensive to maintain when compared to the income generated by rent, so it ends up being a good option for investors. Additionally, investors can opt to simply purchase and resell property after a renovation, which is a process that can force the house to appreciate in value.

Multi-Family Properties – When you think of purchasing multi-family properties, you might think that the price is too prohibitive, but this isn't always the case. For example, property like this typically can be more easily financed through borrowing institutions due to the fact that these companies prefer these due to the fact that they typically have lower vacancy and foreclosure rates.

Commercial Real Estate – One of the primary advantages to purchasing a commercial investment piece of real estate is that these have the fastest rates of appreciation. Additionally, these properties also tend to have faster capitalization rates as well so that you can make a profit at a faster rate.

Real Estate Market Overview and Neighborhoods

As a city, this town has several key neighborhoods that include:

• Bridge Street / Boston Street
• Salem Neck
• City Center
• Northern Part of the City
• Loring Avenue
• Highland Avenue / Swampscott Street
• Congress Street / Derby Street
• Canal Street
• Bridge Street / Gifford Court

Each of the nine neighborhoods has a lot to offer, and one of the more interesting aspects of town is that much of the residential property has origins that predate the Second World War. In fact, a sizeable portion of these homes have been converted to condos, duplexes, and townhomes in the majority of these neighborhoods.

Salem is a part of the state with a sizeable amount of commuters, so an investor would be wise to seek out properties that can appeal to this segment of the population. For example, residential properties that are nearby to MBTA stations or highways can be fairly beneficial. Additionally, for commercial real estate, seek out properties that can seize on opportunities created by both foot and vehicle traffic.

Choosing the Right Investment Property

If you're going to consider a community like this one, it's going to take a bit of work and due diligence in order to make the best investments. Let us at Boston City Properties help make the process easier; we're one of the leading brokerages in the Boston Metro area and have excellent records of the available properties in the area. Give us a call today at 617-247-1933.

Click Here to Search Investment Properties