Owning your own home, owning your own business, and being a landlord, these are all part of the American dream. But as you know, it’s just a dream. The reality is that achieving these goals requires a lot of hard work. That is not to say it is impossible but that you can’t sit back and wait for it to happen. This article will focus on five of the best cities in the country to be a property investor. This will give you some insight on where you should invest and what to look for when you make your first purchase.
Coming out of the financial crisis was a great time to be a property investor. Valuations in 2011 were at or near all-time lows and all you needed to do was rent out your properties to make money.
Fast forward to 2017 and the situation has changed. Valuations have recovered and in some areas, have even hit record highs. In addition, making money is not as easy as buying a foreclosed property, adding a few coats of paint, and renting it out.
Instead, you need to look at property investment as a business. One which requires picking the right locations and then marketing and maintaining said properties. This is not to say that property investment is not lucrative. In fact, it is one of the best investments available. It’s that there is nothing passive when it comes to making money as a property investor.
With that in mind, let’s look at the best cities in the country for property investors.
1) Atlanta, Georgia
It’s not just climate change which is warming up the winters in Atlanta, the property market is on fire as the appreciation of property values outpaces the national average. Even though the city is a major metropolitan area, there are still several neighborhoods which offer value for investors.
These include the northwestern suburbs in Cobb, Cherokee, and Paulding Counties were inventory is drying up. Don’t forget the city center as the Beltline project is revitalizing neighborhoods throughout the city. Just remember that investment is more than just buying the right property. According to Vineyard Property, a property management company in Atlanta, GA, “Management, and proper accounting of cash flow, is just as important to ensure the success of your investment as the deal itself.”
2) Austin, Texas
It seems like Austin is on everyone’s minds these days. The capital of the great state of Texas is also home to one of the best property markets in the country. This is driven by a tech resurgence in the area and by the continued expansion of the University of Texas – a great rental base for property investors.
In addition, property values grew by nearly 10% last year. Some of the best neighborhoods in Austin include Windsor Park, Pelican Springs, and Parker Land as the rental yields are higher than in other parts of the city. But if you are looking for value, then check out the North Loop area.
3) Orlando, Florida
Did you know that more than 66 million people visited Orlando in 2015? This is a boon for property investors as these visitors need places to stay and then there are the people who look after the visitors. Some of the best spots for property investors in the Orlando area include Lake Nona and Winter Park.
4) New Haven, Connecticut
While the northeast is not on the list of the best places to buy property in the U.S., but in the case of New Haven that is changing. Not only are property taxes lower in Connecticut than in neighboring New York state, but is a short train ride from the Big Apple and is home to four major universities – Yale, Quinnipiac, Southern Connecticut, and New Haven. Granted, valuations in New Haven are slightly higher than elsewhere, but the right investments offer solid returns as some of the lowest tax rates in the northeast.
5) Salt Lake City, Utah
Salt Lake City is one of the fastest growing cities in the country and the property market is growing with it. In fact, the city ranked among the nation’s best markets for investors in 2015 and there are no signs that this will change anytime soon. If you are looking for a safe bet, then come out to Utah to see what all the buzz is about.