Why not buy property in an area where a big event is coming to town, say the World Cup or the Olympics, or on a smaller scale, a region where conventions of all sorts are the norm? Scout out downtown areas to see if there's space available for what could become condos, residential hotels or a hotel.
What are some unusual events that might fit this category – the aftermath of Hurricane Katrina was a strange situation for the real estate investor. How do you view a real estate investor in such a tragic situation? The government ignored early warnings about the levees and then delayed or didn’t assist a region while it was swallowed up by water. Actually, an investor can come into the region and help others get back on their feet by supplying housing for those in need.
What are the returns on a residential hotel? Hotels near entertainment – casinos, Disneyland, the beach, or ski resorts, and these locations have a steady supply of renters looking to have a good time. Where can you buy property to take advantage of a seasonal influx of visitors? How can you fill a demand? But, at the same time, have a way to fill the property off season—don’t forget that.
It pays to get creative and think of areas of the real estate market that are untapped. Developers pounce on opportunities to buy property or land near shopping centers, sports facilities, and music halls. But is there a niche amongst the big developers that is not saturated and so competitive?
Olympic Property Boom?
The 2012 Olympic games in London will push home values up drastically, from the BBC:
Analysts predict the value of homes could rocket by 66% as a result of our victorious bid to host the Games. But is it hype or reality? Inside Out gathered experts to give their opinion on the next property boom. On July 6th we all celebrated London winning the games – especially estate agents in the areas around the site of the Olympic development in Stratford.
In China, the 2008 Beijing Olympic Games in conjunction with the 2010 Shanghai World Expo will fuel an increase in the number of private equity funds in China’s real estate market. In 2006, real estate was found to account for 46.6% of overseas investments, and with the aforementioned event and center, we can only assume how much more money will get pumped into China’s real estate market.
Professional Sporting Events
Why not invest in cities where major sporting events occur? This doesn’t always mean the big events, such as the Super Bowl, World Series, or Stanley Cup, but it’s more about the smaller games that comprise the entire season. There are diehard fans who travel cross country just to see their favorite teams play, and you can capitalize on that.
Figure out the teams people are more willing to follow, such as the New York Yankees, or teams that are doing extraordinarily well, especially if their success is unexpected (i.e. a Cinderella team). Which teams have a particularly devoted fan base? Which teams have a history for success? Look at past histories, such as the Chicago Bulls back in the early 90s and the San Francisco 49ers in the 80s—these teams were hot, and I’m sure investors cashed in then. Accordingly, you might not want to invest in an area whose team has a history of sub-par performance because there isn’t much incentive for fans to watch them play.
Colleges and Universities
Chances are good that if a university is present, there will be lots of people who need a place to live. Professors, faculty, and students seeking to live off campus will naturally flock to you, especially if you can offer affordable housing in an area where houses are exorbitantly expensive. However, you’ll need to organize your properties and lease agreements accordingly, such as outlined here, Lease Agreement.
College football alone draws in tons of people, not to mention other sporting events such as baseball and especially basketball. With so many colleges and universities, there’s great potential to tap into a market somewhere. When the season is over, though, is there another sport to pick up the slack? Think about summer school and, of course, graduation. How about conferences held at major universities?
Talladega, Daytona Beach, Bristol, and Indianapolis are all big names in racing, but there are many other cities that host racing events as well, such as Kansas City and Richmond. Several races can be held at a single city alone, such as the 2007 Nextel Cup Series and the 2007 Busch Series at Daytona Beach, while other cities might host a larger race such as the Indianapolis 500.