An increasing number of people have become interested in real estate investing over recent years. The global crash of the housing market was a disaster for those who lost their homes, but it made real estate investing more accessible for everyday people who did still have some capital behind their name. However, the market is now starting to recover again, meaning that investment decisions have to made a bit more smartly than what they did in years gone by. Let’s take a look at some of the best places to invest.
Buying Rental Property in Cities
Rental properties in cities are very popular with investors. The dream of owning your own home is long gone, and people instead look for something decent to rent. This does mean that you have the best chance of making a good investment if you choose a property that is in a desirable location and in good condition.
The $163,700 median existing-home price is 5% lower than it was a year ago, but potential homebuyers facing 9.1% national unemployment and tight credit requiring a 20% down payment on home purchases are content to wait it out in a rental.
The best cities to buy investment property in are Las Vegas, Orlando FL, Colorado Springs CO, Memphis TN, Jacksonville FL, Houston TX, Jacksonville FL, Atlanta Georgia, Columbus Ohio and Phoenix AZ.
Best Cities in the World
Perhaps you want to move out of our country with your investments. After all, people need to live in homes regardless of where they live. Besides this, owning vacation properties as an investment is also becoming interesting, particularly in those parts of the world where purchasing a vacation property is very cheap. The top 15 global places to buy property, however, aren’t all cheap or even interesting to tourists. Instead, they are based on the fact that they have seen the biggest growth in value. Ranking 15th, for instance, is Kuala Lumpur.
12-month % change (Mar 2012-Mar 2013): 2.80%. 3-month % change (Dec 2012-Mar 2013): 2.30%
The other cities, in ascending order, are Tel Aviv, Beijing, London, San Fransisco, Nairobi, Hong Kong, Monaco, Los Angeles, St Petersburg, Shanghai, Dubai, Miami, Bangkok and Jakarta.
The Worst Places to Go
Not everybody has the ability to purchase investment properties in any of the aforementioned cities. This doesn’t mean that you are unable to purchase or get on the investment market. Other cities, towns and even villages can be just as viable. However, official advice has now been provided to make sure people don’t take too many risks with their money and invest in what can only be described as the worst places for real estate.
While some housing markets are recovering at a quicker pace than others, Leitman Bailey says 2013 is on track to be the best year for real estate since 2006, and the uptick is being welcomed with open arms from buyers and sellers.
The worst overall is the Mid West. The only way there will be a pickup here is if new jobs are created, allowing people to actually move to the Mid West. Official advice also warns people to stay away from investing in property in the suburbs. The dream of living in suburbia is long gone, not in the least because of the increasingly high costs of transport. Hence, if you want to buy rental properties and stand a good chance of renting it out to a good tenant, try to stay away from suburban areas. Not just that, prices within inner cities tend to grow faster as well, as there will always be a high demand