2020 has not been a good year so far due to the pandemic, the economy is suffering and yet real estate is still a safe haven if you’re looking to invest some money. Come what may, people will still need a place to live. As a prospective landlord you still stand to make some money – the question is how much money?
A savvy investor in the real estate sector knows exactly which market indicators will decide the future of his investment.
On the one hand, you have to consider the economic situation of the city you want to invest in. Is the economy in the area growing, stagnant or shrinking? That’s the main criteria as a booming economic sector means more jobs, better wages and, most important, population growth, people in need of a new home.
On the other hand, a prospective investor needs to look at the real estate situation in a particular city. Of particular interest is the rental occupancy level. If this level is rather low, this means you’ll be entering a market where there are too many houses available and too few people in need of a place to live, which is a bleak perspective for a potential investor.
At the same time, you need to look at rent levels in the area and figure out if it’s enough to cover your mortgage, in case you take out a loan. And, of course, if you’re looking at getting any sort of income after dealing with the mortgage.
Last, but not least, check out rental default in the area. You don’t want to deal with tenants who frequently miss out on their rent payments, especially if there’s a mortgage to consider.
Now, let’s have a look at the cities realtors consider a very good investment at the moment.
The city of Boise ranks #1 on most real estate market analysis as it has seen a steady growth for the past few years. At the end of 2019, Boise housing market was considered the most promising in the whole country for the following year by the reputable Realtor.com. The coronavirus pandemic did not change the city’s economic perspectives in a significant way. On the contrary, the laws of supply and demand keep driving house prices up. If you’re looking to invest, the value of the houses in Boise will keep on rising over the next five to ten years, so your investment is secure.
For the next 12 months, the appreciation forecasts stands at 3.2%.
The main reasons Boise is a good place to invest are the population and job growth indices, both triple the national average.
On top of that, the housing inventory is very tight, which translates in high demand for the available units and high rentals.
The main reason the Dallas housing market is very attractive at the moment is that the local economy is very diverse, which means the city won’t be particularly hit by the current economic situation. On the contrary, the local economy is growing and real estate figures show 340 people relocate to the Dallas-Fort Worth area every single day. All looking for a new place to live. According to estimates, the population of the city is expected to double over the next 15 years, a very good news particularly if you’re considering a long-term investment.
Local real estate experts predict a 3-year house value appreciation forecast of 11.4%.
The city of Atlanta shows all the signs of a healthy real estate sector, even in these troubled times. The main reason you should seriously consider investing in Atlanta is the high demand in the housing sector. The population has been rising steadily over the past decades and will continue to do so. According to estimates, two million people will be moving to Atlanta by the end of the decade. In terms of property value, the appreciation forecast stands at 9.3% over the next 36 months.
Florida was hit very hard by the coronavirus pandemic, but in terms of real estate you have to look at the bigger picture and think long term. Orlando is and will remain a main tourist attraction when the current health crisis will be over. Whether in a couple of months or next year, Orlando will be business as usual again, which means lots of tourists and lots of jobs. According to Forbes, Orlando is the second fastest growing city in the US and a savvy investor should keep that in mind.
Property values have risen by an astonishing 43.67% over the past decade and the prospective investor will certainly like the fact that 60% of the housing units in the city are rentals. For the same reasons, you might want to have a look at the city of Tampa, also a housing market with great potential.
Several cities in Texas routinely make it too the list of hot real estate investment opportunities, and Austin is perhaps the best of them. It has a growing population and a low unemployment rate, due to a fast-growing economy. Based on these factors, rents in the city are rising and will continue to do so for the foreseeable future. At the moment, the median rent per month is $1,750. Real estate experts consider Austin, Texas as one of the best cities in the US for long-term real estate investment.