Quick little post to highlight yet another award for Louisville as a great place to live. This time Morningtar writes “Five Areas for Homebuyers to Investigate” where Louisville, KY is listed under “Low-Profile College Towns” as a great place to consider moving.
Low-Profile College Towns. You can find great deals and lots of culture in places like Lexington, Ky., or Knoxville, Tenn. Asheville, N.C., has become somewhat of an artist’s colony. Bloomington, Ind., feels like a southern town, although it’s close to the capital, Indianapolis. Champaign-Urbana, Ill.; Louisville, Ky.; and Jackson, Miss., also offer many amenities at low prices.
What was even more interesting to me what how the story ended by belittling real estate as an investment while defining the investment incorrectly. It took this comment from a reader to see the record straight, in my opinion.
An important note on looking at whether real estate is a good investment (and this is what a lot of people forget): your NET return on investment. So that’s roughly appreciation minus taxes, depreciation/maintenance and finance costs. Then figure out the additional benefits of the mortgage and tax deductions and capital gains break (if you qualify and itemize).
I would expect Morningstar to have a more complete view of what an investment is given their history. My other gripe, how is Louisville a “low-profile college town”?!?