Best Places to Invest in Real Estate Based on Cost of Living
It is a bright outlook for real estate in America, but where are the best cities to invest in? Which cities offer the best employment outlook, lowest taxes, regulations and pro-business environment? When searching for the best places to invest in real estate, people often go to the wrong places. They don’t know what factors make a city good for investment or what causes investors to get attracted to a certain place. Let us first give a brief summary of the factors that make a city suitable for a person to invest in real estate.
What makes a city great for investment?
Real estate is a great investment, however investing in the wrong place can turn into a nightmare. What makes a city great for investment? A question asked by so many. As with all investments, there are no guarantees when spending your money on a property, but you can increase your odds of a successful real estate by targeting the right cities. Great investment cities share certain traits in common, like solid job growth and good cost of living. They also attract entrepreneurs who want to start small businesses. And they also have stable neighborhoods that are appealing to either singles or families. Investors should look for middle-class neighborhoods in cities with positive population growth. These are the factors that make certain cities the best places to invest in real estate. So what cities meet these criteria? Here are some that are recommended:
1. Austin, Texas
Texas baby! It is without a doubt that Texas hits everyone’s top list for investment real estate every year. Austin, Texas is known for its long-term sustainability and growth. This city is home to many things like the state capital, the University of Texas, and a variety of huge businesses. Austin definitely attracts many investors with its wide range of affordable homes. It is easy to find a four bedroom house in the $200,000 range. The cost of living for Austin is very reasonable. At 3% below the national average cost of living, moving to Austin may be an economical choice for you. One of the great things about Austin is that the cost of housing is 15% below the national average. Also the growing population in Texas gives rise to demand in residential real estate. For investors this is by far one of the best places to invest in real estate.
2. Nashville, Tennessee
When searching for the best places to invest in real estate, two key factors must be taken into consideration. 1) The annual rent growth and 2) the demand for rental housing. Nashville ranks well in both factors. To begin with, the metropolitan area is expected to see steady rent growth in the coming years, while rental housing is in great demand. This city is also a very affordable city. The cost of living in Nashville is 15% below the national average. For investors, this city is a great opportunity for real estate investments because of the high demand for rental homes. Buyers can choose affordable properties in a healthy market of single-family homes, which are a popular choice among renters. Another major reason why Nashville is attractive to tenants is its low unemployment rate, which is one of the many signs of a strong local economy. This city couldn’t be any more perfect!
3. Miami, Florida
This city definitely is one that provides plenty of profit potential for real estate investors. Why? Job growth! Miami is experiencing steady job growth with thousands of jobs being added to the market. Perfect place for many investment opportunities. Being a global port city, Miami attracts residents from across the globe and has become the center for small businesses. The demand for housing in Florida is rising so this is great for those looking for the best places to invest in real estate.
4. Indianapolis, Indiana
What makes this city one of the best places to invest in real estate? Its geographical features. Indianapolis is located near the geographical center of its state. It is near a transportation hub so it’s great for those who like to travel to work. Its variety of neighborhoods attracts a diversity of residents. From its suburban, urban to semi-rural neighborhoods, this city has it all. Indianapolis is cheaper compared to the big cities. It is a very affordable place to live in and the cost of living is suitable for many. This city is very business friendly and is great for investors looking to invest.
Anyone considering investing in real estate should always study and understand all the factors that could possibly affect their investment. One of the major factors is the place in which you want to invest in. It would be very irrational to say that this city and only this city is good for investment since each city has its good and bad. Yet what you have to understand is the key aspects that make one city better for investment than another city. Mashvisor provides a guide to all the cities across the country and what each city has that is good for investment.
Originally published at www.mashvisor.com on February 24, 2017.