If you have a sum of money on the side, it’s always a good idea to invest it. As long as you do your research and you invest your money wisely, you can make a sizeable return on your initial investments. If your money is sitting in a savings account, you are wasting an opportunity to increase your financial worth. People often associate investment with risk; however, one of the least risky investments you can make is within the property market.
The key advantage of investing in the property market is that the value of your asset will steadily increase over the years as a result of appreciation and inflation. Not only this, but owning property is a great way to generate passive income. You can find a suitable house or apartment and rent it out instead of living there. If your mortgage is $1,500 each month and you rent out your home for $2,000 per month, the house is practically paying for itself and even giving you a bit of extra cash on the side. You don’t even have to manage the property yourself if you use a managed rental service.
The great thing about investing in real estate is that you can practically buy a home anywhere. Don’t limit yourself to what you know and your surroundings. Instead, try to find cost-effective housing in up-and-coming neighborhoods. If you consider different cities and even different states, you will be opening yourself up to a much larger pool of opportunities. Things to look out for when purchasing a property include interest rates, crime rates, tax laws, and average rent prices. To make things easier, we have compiled a list of some of the most attractive property markets for investment in the United States.
Arizona
Arizona has become one of the hotspots for renters looking to escape the excruciating property prices in places like Los Angeles or Seattle. The capital city, Phoenix, has amazing weather, a growing and diverse job market, and a proven track record of increasing property values. There are countless homes for sale in Arizona, enough to fit every budget and necessity. New style-builds and vacation style properties are especially prominent in neighborhoods like New River, Cave Creek, and Scottsdale. Arizona also has many up-and-coming neighborhoods, like Apache Junction, Tempe, Prescott, Avondale, and Gilbert.
Georgia
The population of Atlanta, Georgia, has increased over 14% in the last 10 years, making this area especially lucrative for the real estate market. A growing population equals a higher demand for housing, which is every investor’s favorite thing to hear. Not only this, but Atlanta’s employment rate has been steadily increasing, which also means more disposable income for the potential tenants. The economic growth in Georgia will be reflected in an increase in property prices, so make sure to snag a deal before it’s too late. Good neighborhoods to invest in include Roswell, Marietta, Gwinnett County, Peachtree Heights, Grant Park, and Buckhead.
Florida
Florida, also known as the Sunshine State, is a great area to invest in because it is home to some of the country’s most popular tourist destinations. As this state is so popular and receives so many yearly visitors, the real estate prices are also quite high. However, don’t let this discourage you from investing, as there is plenty of money to be made in the area. You can either look for property that targets long term tenants or holiday homes, as there is a solid renter’s market for both. Some of the best areas to consider investing in are Orlando, Jacksonville, Tampa, Tallahassee, St. Petersburg, and Kissimmee.
Alabama
Alabama ranks as one of the best states to invest in because its market can’t stop growing. It is one of the top-performing real estate markets in the US, and the value of its homes continues to increase each year. The most common property type in Alabama is the single-family rental home, which makes up 60% of the housing market. The state’s economy is powerful and diversified, and the price point for a property is well below the national average. Alabama is home to many universities and colleges making it a vibrant state with a population of close to 5 million. The most worthwhile neighborhoods to invest in are Birmingham, Mobile, Huntsville, Montgomery, and Tuscaloosa.
North Carolina
North Carolina is a state that often flies well below the radar; however, the opportunities to make money in this area are infinite. The housing market in North Carolina has been steadily growing ever since the financial crash in 2008. This state has it all – high occupancy rates, a historically steady performance, and a stable demand for rental properties. The average cost of a home in this state is around $275,000, which is significantly higher than the national average. However, since 2019, there has been a 7.1% increase in the average price of a home, which means there is a potential to turn a significant profit in only a matter of years. If you are interested in investing in North Carolina, consider looking at cities like Charlotte, Durham, Raleigh, Cary, and Asheville.
If you are new to the world of investing or even real estate, make sure you do as much research as you possibly can before you settle on a home. Although the property market is one of the safer ways to invest, it is always subject to cyclical demands, and the covid-19 pandemic is a great example of this. However, having assets like real estate can bring many benefits in the future, so it’s important that you make your decision wisely. Keep in mind that each state has its own specific set of rules for purchasing a property. Reach out to your local realtor and ask them for their advice on the current state of the housing market. Use the internet to conduct your research further and get yourself on that property ladder.
