If you’re looking for ways to earn passive income and build wealth, investing in real estate is the best way to go. This endeavor gives you fulfillment and control and allows you to build capital. The value of real estate properties is also increasing, protecting you against inflation.
Your success in real estate investing depends on the location you choose. Ideally, you should invest in real estate in places with high rental occupancy and low tenant default rates. Cities or states with significant job growth, population growth, and affordable cost of living are also great options as this can mean a wider target audience.
Here are some of the best places in the world to invest in real estate:
1. Boise, Idaho
Every year, more people are moving to Boise, Idaho—and it’s easy to see why. The capital city of Idaho has lower costs of living than other places in the US. Boise also offers countless job opportunities in the fields of education, healthcare, retail, and information technologies.
What makes Boise appealing to locals and tourists is its low crime rate. Boise actually ranked as the eighth safest city globally as the number of violent crimes is lower than the national average. This is one of the reasons many families choose to raise kids in Boise.
Start scouting for the best real estate apps and looking for properties in Boise as this city is one of the best places to invest in real estate. Here’s why:
- Population and job growth higher than the national average: Boise has a growth rate of 14.6% annually and job growth 2-3% times higher than the national average.
- Cheaper business costs: Starting and running a business is cheaper in Boise than in other cities in the state, attracting hundreds of entrepreneurs every year.
- Faster appreciation: Real estate properties in Boise have a one-year appreciation forecast of at least 15%. This means the value of your property will increase by 15% within one year. For example, if you invested in a property worth USD$400,000, its market value can increase to USD$460,000 after one year.
2. Dallas, Texas
Dallas, Texas, is known for its cultural activities, namely ballets, operas, musicals, and symphony concerts. Dallas also offers countless activities and attractions for everyone. Big sports fans can watch professionals play at the AT&T Stadium while people who live for the nighttime can easily find places that offer live music, fun crowds, and great drinks.
Dallas, Texas, isn’t only a diverse city; it’s also a haven for real estate investors because of these reasons:
- Population growth: The population of the city is expected to double for the next 15 years.
- Higher housing demand: As the population in Dallas increases, the demand for housing also increases. In fact, the demand for housing has surged over the last year and will continue to grow in the coming years.
- Cheaper properties: The properties in Dallas are 5-15% cheaper than the market value. This attracts tenants and homebuyers worldwide, making it easy for you to earn profits from your investment.
3. Las Vegas, Nevada
Las Vegas, Nevada, is an internationally renowned major resort city as people worldwide would flock to the city to gamble, shop, and experience fine dining. Las Vegas is also known for throwing the best night parties held in nightclubs, pool clubs, and bars.
Las Vegas is also one of the best cities to invest in real estate because of the following:
- Growing population: Las Vegas is the most populated city in the state and the 28th most populated city in the US. With the number of residents living in Las Vegas, finding tenants or homebuyers will become a piece of cake!
- Lack of business-related taxes: Starting a business in Las Vegas is cheaper and easier than in most cities in Nevada because there are no state taxes for corporations.
- Low unemployment rate: The robust economy of Las Vegas continues to attract entrepreneurs who provide jobs to residents. As a result, the city only has an unemployment rate of 3.5%, a far cry from the national average of 7.7%.
4. Atlanta, Georgia
One of the reasons why Atlanta, Georgia welcomes thousands of residents every year is its weather. Although Atlanta has four seasons, the weather patterns are mild, allowing residents to take on various outdoor activities throughout the year.
Atlanta also has a massive food scene where locals and tourists can taste different cuisines. This city will always have something to offer regardless of whether people want to eat in classic restaurants, vegetarian and vegan restaurants, or smokehouses.
As for real estate investors, Atlanta, Georgia, has these things to offer:
- The top rental market in the US: More than half of the population of Atlanta choose to rent instead of buy homes. Even those who earn more than the average monthly salary chooses to rent as this allows them to find different careers in different locations.
- A steady increase in population: Almost 500 people move to Atlanta every day because of its booming economy and unique neighborhoods. Some even choose to retire in Atlanta as the city has favorable tax rates and low costs of living.
- Competitive business industry: Atlanta is the home to many Fortune 500 companies, namely The Home Depot, The Coca-Cola Company, Delta Air Lines, and WestRock.
5. Orlando, Florida
Orlando, Florida, is home to several theme parks. This is where people can enjoy Disney’s Magic Kingdom, Universal Studios, SeaWorld Orlando, and Universal Island Adventure. Most of the attractions found in Orlando are also suitable for kids, making the city one of the best places to start and raise a family.
Orlando, Florida, also remains a strong real estate investment destination because of these reasons:
- Booming population: Orlando is the fourth largest city in Florida and is the center of the state’s metropolitan area. The city welcomes around 1,500 people per week and will likely reach a population of 5.2 million at the end of 2030.
- High demand for rental properties: More than 60% of the population in Orlando rents homes.
- Economic and job growth: As Orlando welcomes businesses from the industrial and technology sectors, the economy and job growth in the city are expected to skyrocket in the next five years.
Education Is Key When Investing In Real Estate
Once you’ve decided that you’re going to invest in real estate, research more on the places mentioned in this article. This will help you grasp the lay of the land, allowing you to make better decisions and mitigate risks as you become a real estate investor.