Real estate investments can be highly profitable. They can be passive sources of income while serving as long-term investments with a value that increases over time. But before deciding to put your eggs in the basket, there are a few key factors you need to consider so you can maximize your assets.
This post will discuss some of the best places to buy real estate property, plus tips and factors to consider when investing in the industry.
Factors to Consider in Determining Where to Invest
When it comes to buying an investment property, the location can make all the difference. However, it’s equally important to consider some other factors when evaluating where to invest. These may include:
- Property condition
- Cap rate
- Appreciation potential
- Costs and availability
- Social and political issues (political landscape, government budget issues, immigration)
Each criterion is affected by other factors. So, the analysis goes deeper than the few mentioned key indicators. Still, destinations with a substantial house index value, rapid job growth, and high median rent are your ideal options.
You also have to consider your plans before choosing a location. If you don’t mind giving up exclusivity by living in a township, you might as well look up properties located in the best areas. Also, it’s critical to know whether that destination is summer-only, winter-only, or all-year-round attractive.
Be Clear with Your Preference
No one can tell you exactly what your real estate property criteria should or should not include. It comes down to personal preference, and most of your chosen criteria will be specific to a certain type of investment. For instance, if you are looking to become an investor of small units, your requirements will include multi-family properties and exclude commercial buildings.
By being clear about what type of property you’re looking for, your search will become easier. Also, you can communicate your preference more effectively to the people who may help you buy property.
Top 5 Places to Invest in Real Estate
After identifying your specific requirements for your property investment, you can start looking for the perfect location. In the United States, certain states offer more opportunities for real estate investors than others. These places have the highest overall percentage when all the indicators are combined.
Here are the five cities that take the top spot for the fastest-growing rental markets in the country:
- Orlando, Florida
- Median rent per month: $1,486
- Median sales price: $231,000
- One of the most visited tourist destinations in the country
Orlando is known for being an ideal location that offers social and economic benefits. With a 3.3% employment growth rate, it is the fastest-growing metro in the U.S. In addition, tourism development and hospitality in the area are at significant highs.
- Atlanta, Georgia
- Median rent per month: $1,434
- Median sales price: $190,000
- 53,700 new jobs were created over the past year
Various tech-based and financial companies like Google and BlackRock are growing in Atlanta, helping contribute to the city’s annual job growth rate. In addition, the state has a unique urban culture and positive market forecasts, making it a perfect location to buy an investment property.
- Las Vegas, Nevada
- Median rent per month: $1,107
- Median home price: $296,730
- Most populous city in Nevada, with about 2.7 million
Las Vegas, Nevada is known for its flourishing industries. Not only is the city popular for entertainment, gaming, and tourism, but it also has thriving industrial and technology sectors. It also continues to attract new residents and significantly impact the real estate market.
- Charlotte, North Carolina
- Median rent per month: $1,259
- Median home price: $252,438
- Home values have risen by 5.3% over the past year
Recognized as the third best city in the U.S. to start a business, Charlotte is known for having a booming economy and vibrant culture. With a significant job growth rate, it has become a major location for finance, with the second most banking assets after New York City.
- Dallas, Texas
- Median rent per month: $1,624
- Median sales price: $215,000
- Fourth most populous metropolitan area in the U.S., with 7.5 million residents
Dallas has attracted several companies because of its fewer business regulations and lower taxes and business costs. It has a median price lower than the national average. This makes the city an ideal and affordable location to invest in real estate.
Consider Key Factors Before You Invest
Investing in real estate, especially in the cities mentioned above, can be profitable. Just make sure to find the property that fits your budget and preference. After all, your investment should give you joy and revenue at the same time.
In addition, before you invest in real estate, keep in mind the different factors that might affect your investment ventures, such as appreciation potential, availability, and the social and political landscape of the place where the property is located. This way, you can be sure you’re making the right move.