Where NOT To Invest

 A story in the main Arizona daily today caught our attention. The article trumpeted the fact that rentals are cheaper on the outskirts of town. This is applicable to most cities, which is why we decided to comment on it today.

A property manager said the best deals are far from city centers where commutes to central-city jobs are grueling, roads inadequate and shopping scarce.

He oversees more than 800 southeast Valley rental homes. "The average (house) rent is $1,000 to $1,100 in town, but in the newer areas (such as east of Queen Creek) it's $700 to $800 for the same-sized home," he said.

Another property manager pointed out in one of the most distant 'burbs, it can take 40 minutes just to get to the freeway(then another 45 minutes into the central city, under best-case scenarios).

Whether you're an investor in California, Texas, Nevada, or Arizona, do not invest in the fringes. Thousands of products which all look the same (that granite countertop isn't going to help that much competing against six other houses in the same neighborhood, believe me), all pegged into the cost of gas.

 American cities have just about hit their sprawl boundaries, which is the cost of gas and quality of life. After 50 years of commutes which getworse every decade, Americans are deciding it's not worth it. Four bucks a gallon will trump drive till you qualify any time. That goes for renters as well as buyers.

Caveat investor.

Scott Seckel, Editorial Director, NEXZUS Publishing

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