With inventory declining and home prices rising in several parts of the country, many are looking at a chance to invest in a residence.
With the market fluctuating and changing as we speak, though, it can be challenging to find a place for investing in homes. We want a reasonable investment, yet a decent amount of return no matter what.
Buying a home is a double risk, as you want a good place to live (watch out for these red flags when buying a home) as well as a safe investment. This is why you need to look at several factors before placing your money in a likely space. One of these factors is the city where the property is located.
Fortunately, there are some spots in the country that are better for home investments than others. The cities below provide a great blend of relatively affordable prices and positive factors for making a home.
If you’re considering an investment in some real estate, the smartest options are in the following cities.
1. Nashville, Tennessee
This city has ranked among the best cities for real estate investment for the last few years at least. What really makes it stand out now is the fact that’s it’s been steadily moving up these rankings, mainly due to its improving home values and job growth.
The population growth is quite stable at Nashville. Besides, the employment growth rate seems to be promising for those who want to get a job after moving to this new city. Home values are also increasing at a higher rate, so it’s a logical time to invest in this particular area.
2. Columbus, Ohio
As the years go by, Columbus is experiencing better and better home values. The rental opportunity is booming so being a homeowner makes a lot of sense in this particular economy.
Buying property outright will save you the cost of renting, while the investment is only going to be beneficial in the medium or long run due to the climbing home values.
As far as living in Columbus goes, there’s a decent employment growth rate that should have you with a decent job in no time. Paying off your property shouldn’t be an issue once you have a steady income under your belt.
3. Charlotte, North Carolina
It’s safe to say that this area is one of the best for home values within the United States. The population growth is decent and increasing annually since 2010. Employment is also another great factor here, so you can be assured of a steady job along with income from your rent, if any.
The rental yield in North Carolina might not be as attractive as other locations on this list, but it has been increasing by a fair percentage since 2015. The trends seem to indicate that these increases will continue, so we’re assured of a safe investment plan here.
4. Orlando, Florida
Orlando has topped several listings about the best places for investing in property. The high population growth is second only to Seattle, while the home value rate was unbeaten in 2017.
The employment growth is quite impressive, ensuring that the home of Harry Potter and Mickey Mouse stand unsurpassed in the real estate potential.
5. Austin, Texas
Often cited as one of the best cities to live, Austin is also high on the lists of best places to invest in homes. Home prices there are miles above the supported price-to-income ratio, ensuring that homeowners will have a lucrative investment on their hands.
6. Minneapolis, Minnesota
These twin cities are usually a safe place for investing in real estate. The economy is quite healthy, without being excessively growing out of control. Employment is also at a high growth rate, while home values are steadily on the rise for the past few years.
The rental yield is high enough to allow you a great income, enough to hopefully pay off the cost in about fewer than 14 years. This is below the average time period you can find in this country by about two years. At the same time, your home will be steadily increasing in value every year you own it.
7. Arlington, Texas
The population growth in Arlington, Texas may not be much, but that’s actually preferable if you want a quiet environment to make a home. It isn’t negative, which is heartening for the purpose of investment.
The real attraction here is the employment growth rate, which is better than San Antonio. Their rental yield is right up there with Columbus, guaranteeing that you’d be able to make a lot from your property even while paying it off. 12 years should be enough to make the full payment and gain complete ownership of your home.
8. Reno, Nevada
At first glance, it might not seem like the rental yield is too impressive in this particular city. However, we’ve still included it in this list due to the impressive rent trajectory, which shot up in 2017 and the previous year.
Reno’s population is on the rise, along with the employment rate, which is among the highest ones here. Overall, it’s one of the safer bets to place on investment, especially when it comes to homes and other forms of real estate.
9. St. Petersburg, Florida
Moving on to some of the larger growth rates, this city gets a thumbs-up due to the solid employment and population growth rate. Home values are growing at a very high rate, so you might want to start investing right away.
10. Seattle, Washington
This area has consistently picked up the reward for best growth rates overall. If you have the chance to invest in a home in Seattle, we don’t recommend hesitating. While the employment and rent yield might not be the absolute highest, it’s very close.
The above options are not for those who’re looking to flip. Nor are these the areas where we can expect the highest price surges. These cities are best for those buyers who’re looking for sustainable growth in the long run.
With this medium growth, you can expect to have a stable home for some years without breaking the bank. When the time comes to sell off your residence and move on, you’ll have a valuable property on your hands that’ll secure you a tidy profit.
You can act fast to get less competition, a better price, and the satisfaction of a solid investment at the same time.