The current generation needs to be creative and aggressive in coming up with ways of wealth creation. Many people are entering the workforce during hard economic times. So, people need to have a diversified stream of cash flow for a steady income generation.
As such, investment in real estate has become a popular strategy of making a passive income with little energy and effort needed for success. Earning extra income is as easy as buying a single rental home. All you need is capital, and you can be sure of steady monthly returns.
However, location plays a major role when it comes to real estate investment. Various factors determine how suitable a given city is in terms of property investment. Whatever variables are important for you as an investor may not be considered for another investor. But there are just common locations that are just suitable for this kind of investment.
Whether you are looking for an established location to grow immediately or the most developing area with potential growth, you should consider a market that suits your financial situations and investment desires. The following are some of the cities that are currently ideal for real estate investment.
Phoenix
It has become a runaway destination for many people living in areas with a high cost of living. Some of Phoenix’s neighboring regions such as California, Los Angeles, and Seattle, are only suitable to anyone making millions. The heavy taxes make life difficult for some people who opt to buy Phoenix real estate. The following are reasons why it is an ideal destination for real estate investors:
- In the past year, home values have grown over 8%
- There are universities such as ASU that produce tons of software engineering graduates. Software employment and technology is growing at an alarming rate.
- Tax-friendly. You can freely own a house or get one with a small mortgage.
- Private employers have invested in companies and healthcare systems. There is the availability of well-paying jobs and businesses with friendly policies.
- Short-term rentals suitable for getaways such as Airbnb
- Phoenix is in Arizona, a beautiful place with favorable living conditions compelling for investors and buyers.
Austin
Austin may not be the largest city in the state, but its housing market is among the top 15 in the US. It has become the center of a vast metro area due to the tons of tech jobs available. The city is still young and has the potential to grow in the next few years. Many people are moving into the city that the number of homes for sale cannot keep up with the enormous numbers. Here is why you should consider Austin when you choose for investing in real estate:
- The economy is strong and promising.
- Real estate is affordable but gaining value at an alarming rate.
- The population is growing tremendously, with millennials being the most considerable buying force. It is currently number 11 among the most populated cities in the US.
- Rent is rising at almost the same rate as population growth.
- The real estate investment history record in Austin has maintained a consistent growth for the past ten years.
Charlotte
It is a hot market for investors looking to invest in real estate or hold and rent a property. The current annual appreciation rate of real estate in Charlotte has not been less than 2%. It is an indication that this industry is a long way from cooling off. During some phases, the area has low employment and low-interest rates for real estate. However, buyers still find a home to settle in this region. Below are reasons why Charlotte is a suitable area for real estate investment:
- Rent and real estate are affordable.
- Home value has been growing in recent years.
- The city offers its residents an urban-suburban mixed feeling.
- It is a major financial center with the second-most banking Assets in the US after New York City.
- It is beautiful and one of the best places to live in North Carolina.
- It is filled with a great mixture of 53% of owners and 48% renters.
Salt Lake City
It is the largest city in Utah with a challenging real estate market due to limited supply and high demand. It is a national hub for industrial banking as well as a significant tourist spot in the US. The city has a strong economy with an unemployment rate of 2.1%. The excellent job market has made vital contributions to the hike in housing costs over the last seven years. Here is why Salt Lake City is ideal for real estate investment:
- It is a moderate city with a population that has grown 9% in the last five years.
- The majority of the population is young, ranging from 25-39 years. There is a high number of high school and college graduates that create a strong workforce for companies.
- Many people live downtown. The supply there cannot meet the demand, and more development is needed in the city’s CBD for office and housing space.
- A healthy economy that has played an essential role in enhancing the vibrancy in areas like Salt Lake City Downtown
Boise
Despite the challenges brought about by the coronavirus pandemic, house prices in Boise Metro Area keep on soaring and breaking records. The availability of low mortgage rates that can be paid over thirty years keeps the demand for houses high, raising the home prices. Boise is the best real estate investment region in the US. The following are reasons why Boise remains the record holder for the best long-term real estate investments in the US:
- The population and job growth is growing at a faster rate than the national average.
- Doing business in Boise is less costly with low tax charges.
- All forecasts indicate an appreciation of at least 3% in the next year. In the last three months, the value for real estate investment increased by approximately 2.4%
- The rate of unemployment is low at 3.5%
Summary
Remember, real estate investment can be more productive if you choose a suitable location that matches both your investment preference and budget. Always try to be cautious and work with experts if necessary to avoid making wrong decisions,
