Real Estate Location Diversification

January 25th, 2007 by Kenric

When it comes to diverisification most people think of stocks, bonds and mutual funds. You can even take that to mean paper, business and real estate. In real estate, diversification can mean residential vs. commercial, or SFH vs. condos. However, location diversification is also important.

In my post a few days ago about Salt Lake City shows why you should diversify your real estate holdings in several markets. In 2006, only Salt Lake City performed well. Chicago was a wash and St. George and Phoenix depreciated. Overall 2006 real estate broke even for me. What I lost in value in Phoenix and St. George, I gained in SLC.