Investing in Back Bay-Beacon Hill Essay Example | Topics and Well Written Essays - 1000 words

Investing in Back Bay-Beacon Hill - Essay Example As the report declares the main aspects of the real estate industry in Beacon Hill are as follows. First, properties in the area are valued at a price that is either double or triple of its value ten years ago. This presents an opportunity for profits for investors and developers in the long run. Second, properties in the area are either rented as apartments ranging from $1,600 for one-bedroom apartments up to $2,100 for two-bedroom apartments. Third, speculators forecasted the â€Å"back slope† in the northern part of the Beacon Hill area to increase value in the future. Fourth, due to state legislature, which established the Beacon Hill area as an historic district, constructions of new buildings have been prohibited. As a result, the values of existing buildings were enhanced, while land values were limited. This paper stresses that given the aforementioned characteristics of the real estate market in Beacon Hill, Alexander concluded that buying a property in the â€Å"back slope† would be most profitable because of the relatively lower values of properties there. Furthermore, he realized that it would be best to purchase a property, which would require an extensive amount of renovation to have better control on the property’s income potential. The property that interested Alexander was a 4-unit apartment in the â€Å"back slope.† The property is located in the middle of the block and is set 100 feet from the road.