One man’s tragedy is another man’s fortune. This saying has never been more true than in the aftermath of the Katrina hurricane, where the affected areas represent one of the best real estate investment opportunities available.
The most important factor here is price. Many people chose to leave their homes for good, which created a sharp turn in real estate prices. For the interested buyer this makes it the best investment possible.
It can be argued that real estate prices will never come back to their initial levels, but history has shown otherwise. Hurricane Katrina was not the first disaster to hit New Orleans, nor will it be the last. This is a certitude we must live with. Technology will change, the price tag for the repair bill will go down, but disasters will keep coming. This is an assumed risk. This doesn’t lower the opportunity of finding the best real estate investment though. Some risks will always exist, no matter what. What you should focus on are the peculiarities of this certain event. No other recent event triggered migration on such a huge scale. The sociological aspects of hurricane Katrina are what made this disaster unique. The large migration of citizens is what triggered the sharp fall in prices. Such an event is not likely to happen again anytime soon. Florida for example has seen more hurricanes and still managed to survive. The price of New Orleans real estate has hit a low point, which is not very likely to ever hit again.
New Orleans can be considered the best real estate investment for some other reasons too. Destruction on a huge scale has some very interesting long term effects. Destroyed areas in important cities will always recover and the real estate prices of those rebuilt cities always surpass what they once were. Major cities like London after the Big Fire, Tokyo after World War II, and New York after 9/11 have proven this theory right. It is certain that a bright future awaits New Orleans, . Early movers in the New Orleans real estate market are bound to be some of the richest men in the future.
Vision plays a major role in seizing the best real estate investment. As a result of this tragedy it is very likely that the city will be more protected than ever and that any subsequent hurricane will never provoke again such tragedy. It is a shame that it took a Katrina hurricane to make this possible, but nonetheless New Orleans will probably become one of the safest cities in the country.
The areas of New Orleans that were affected by the Katrina hurricane represent one of the best real estate investment opportunities in recent history. No matter how you see it, the future in New Orleans looks bright!