Check Out These Awesome Five Cities for Real Estate

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Check Out These Awesome Five Cities for Real Estate

Real estate has never stopped to appeal to investors. There is still so much opportunity to earn recurring returns from rentals. But even so, strategic location is the primary determinant of how you fair in real estate. With good and thorough research on the place you are considering investing in, you can make wise and profitable real estate decisions.

For you to choose the best locations with a high return on investment, you should consider the following features;

  • Default rate- a good location features little to no tenant default rate. If you invest in properties that tenants always fail to make rent payments, then brace yourself for one of your worst financial years.
  • Great rentals comparative to your mortgage settlements- with a good location together with the ideal market dynamics, you should be able to compensate your mortgage servicing expenses entirely. But the rule of thumb is, the more you can cover, the better.
  • High leasing tenancy- in the location you are considering, how much of the available housing stock is vacant?
  • How the real estate market is fairing- although a good location goes a long way to ensure your success, so does the area’s market. Is the market declining, is it stable, or is it growing?

It is always wise to make informed decisions. And you should also clearly tell your goals, is the investment for short-term gains or long-term hold? With that in mind, let’s get down to the 5 locations on our list and what makes them appealing for real estate.

Scottsdale, Arizona

The housing market in this area is superb for investing in rental property. It’s no wonder Scottsdale homes for sale are ranked as one of the best cities for rental returns. For a long-term investment, an investor can easily create cash on at least 2.5 percent cash proceeds.

Here are the top reasons you should check out Scottsdale;

  • The area features some of the best and friendly business policies. And as such, there is high outflow in companies and well-paying jobs.
  • Arizona is one of the country’s friendliest states on taxes.
  • High standards of living but at a relatively lower cost of living in comparison to California and New York.
  • Home values are on the rise due to the scarcity of housing inventory.
  • Airbnb short-term rentals are legal in Scottsdale, and remarkably, it is only controlled at the HOA level.

Boise, Idaho

It is the best location to consider if you are looking for a long-term buy and holding a real estate investment. There are high demand and supply in this area. And that keeps making the home prices to shoot. Boise’s real estate appreciation rate is an impressive rough estimate of 10 percent annually. And that makes a good return.

Here are some reasons why Boise Idaho is a good location for real estate investment;

  • Robust population growth is increasing demand in the areas.
  • The cost of doing business there is relatively low.
  • The job growth in the area triples that of the national average, ranking Boise at number 6 in the Forbes’ list for most job growth.
  • The appreciation forecast in Boise for one year lies at around 3.2 percent.
  • High employment rate with the unemployment rate lying at 3.5 percent

Tampa, Florida

Tampa is also quite an attractive place in real estate locations, 2020. And the fact that it fairs well in tourism makes it more appealing. There are numerous economic and development outlooks that make this one of the country’s hottest real estate markets. The market is growing soundly.

Here are some reasons you should check out Tampa’s real estate market;

  • The cost of living is lower than that of the national average by at least 5 percent.
  • The city’s population is growing, and investors can purchase properties at a lower rate and lease them later to new arrivals.
  • Residential properties are having a rapid increase in prices. It is probably due to the less than 2-month inventory accessible in the entire Tampa area, which is down at least 21.4 percent in one year.
  • Real estate in Tampa is very affordable.
  • Economic growth in the area largely contributes to its real estate success. There is an impressive number of Fortune 500 companies in the area. It is making the site more appealing to people looking for work. Tampa is one of the fastest-growing job hubs in the country.
  • Tampa has impeccable amenities ranging from incredible healthcare to remarkable transportation and education system.

Austin, Texas

Since 2010, the home values in Austin are almost doubling. Texas is one of the most appealing states for real estate investments, and investing in Austin is also a wise decision. As a tech hub, the area is also fast becoming a tech job hub for many people. That makes the housing market sizable enough.

Here are some reasons we think Austin is a great location;

  • Affordable real estate.
  • The population is steadily growing.
  • A good record as a long-term real estate investment.
  • The impressively lower unemployment rate of not more than 2.7 percent.
  • The area is attracting millennials and increasing the population.
  • It has an annual appreciation rate of about 6.8 percent.
  • A robust economy.

Salt Lake City, Utah

Salt Lake has the highest population in Utah, and the community is still growing. That makes it a hot cake for real estate investors. The real estate market here is very aggressive, and the returns are no exception. In the past eight years, home prices have almost doubled.

Demand is still resilient, and the market is growing stronger. By the start of 2019, Salt Lake City was on the list of the highest real estate returns. Since then, the housing market has grown, and investors should expect more returns if you are looking for affordable real estate investments. With the potential of generating more returns, you should check out Salt Lake City.

Here are some reasons why this city is a perfect location for you to invest in real estate;

  • Unemployment rates in the Salt Lake are lower than in other cities in the country at an impressive 2.1 percent.
  • The annual appreciation rate is more than 8 percent.
  • Home prices are growing while managing to keep demand steady.
  • Steadily growing population.
  • High proceeds in real estate.
  • Salt Lake City is a prominent tourist hot spot, and the economy is more robust than ever.
  • The last decade has seen the city develop more than ever and is attracting more and more people.
  • Very affordable homes

Conclusion

Although other factors are affecting real estate that you cannot predict, the perfect location is essential. If you are considering investing in real estate, then check out these five places on the list. Each of these locations has the potential of making your real estate financial year a great one.