How To Choose The Best Places To Invest In Real Estate In The World
It doesn’t matter if you live in the USA, India, Germany, or anywhere else, there exist basic real estate principles that are a constant regardless of location – investors want high returns on investment and the lowest risk possible. To maximize your real estate investment returns, you want to buy property in places that offer the following:
High rental occupancy: Don’t invest where there is a high vacancy rate
High rentals relative to your mortgage repayments
A low tenant default rate: You need to know tenants are good about paying the rent
It takes in-depth research to invest successfully. Market timing also matters as some cities have exceptional rental income prospects, but a very tight inventory. It can be very difficult to find and close deals that fit your specific investment criteria. Therefore, you need to act fast and wisely. Figure out if your market is growing, stable, or declining. Are you going for short term capital gains or for long term buy and hold? To make it easy for you, Reunion Investments offers top notch market consulting so you can make an informed decision on where to invest.
10 Best Places To Invest In Real Estate In 2020
We looked at data and examined trends from across the US to bring you this list of the 10 best places to invest in real estate in 2020.
10. Chicago, Illinois
Home to the Willis (Sears) Tower and almost 13 millions residents in its entire metro expanse, Chicago has the nation’s third largest metropolitan area. With a large population, a diverse economy, and a stable market, it’s no wonder it makes the top ten. Of all the Fortune 500 companies, 32 of them are headquartered in the Windy City. Due to several factors, including private sector employment and over 50% of the population renting, Chicago is one of the best real estate markets for investing in rental properties for sale.
When you have a population of renters that large, it’s clear to see that rental income in Chicago well exceeds what you’d expect in many other large cities. On average a one-bedroom apartment’s rent is roughly 1,000 dollars a month, while a two-bedroom will cost an average of 1,300 dollars. One reason this city didn’t rank higher on the list is that rental rates for Chicago rental properties are rising more slowly than others, increasing at 0.9 percent a year, which is one third less than the 1.5 percent rental rate increase in 2019 for the U.S. On average it takes 50-55 days for a house in Chicago to sell. Although, more desired homes can sell in about two weeks.
Why Invest in Chicago Real Estate?
· Ranked best in the 2018 Time Out City Life Index (Time Out Group)
· Robust Rental Market – Over 50% of residents rent
· Totally revamped single-family homes with excellent ROI
· Placed on UBS list of the world’s wealthiest cities
· One of the most balanced economies in the country
· Number seven in the world according to 2017 Global Cities Index
9. Austin, Texas
The capital of Texas’ housing market has gained plenty of momentum, with home values rising nearly 100% since 2010. Austin’s real estate market doesn’t compare in size to Dallas, San Antonio or Houston, but its housing market is substantial. Austin has risen as another technology rich city in the last 5-7 years.
An abundance of well paying tech jobs has moved to Austin in the last couple of years. Millennials will likely be the biggest buying force in Austin in 2021, and this is expected to continue for years to come. The areas with neighborhood amenities, nearby shopping, restaurants, etc. will be highly coveted. Austin has a strong and diverse economy is strong and diverse with a shortage of homes for sale. The quickness in which people are moving to Austin makes it nearly impossible to keep up with demand.
Why Invest in Austin Real Estate?
· Robust economy
· Low unemployment rate
· Growing population.
· 11th most populous city in the U.S. and the 4th most in Texas
· Rising rents
· Median rent per month is $1,750
· A top seller's real estate market in the U.S.
· Austin’s track record is one of the best for long-term real estate investments in the U.S. during the previous 10 years.
· Median home price has increased to $405,093
8. Tampa, Florida
Having a population of more than 4 million this Florida city is not only an eye-catching metropolitan, but moreover it is one of the most regularly visited tourist spots. There are many economic and development prospects ascribed to this market, which was labeled as one of the paramount real estate markets in the US in the last 1-2 years. Tampa’s housing market is progressively rising, although the value of home has risen 5.3% over the last year, prices remain low and properties have a decent chance for a strong increase. Available inventory has dropped 21.4% in the whole Tampa metro region, which is one of the main influences in increasing home prices. The standard for a balanced market is 5.5 months of inventory, and Tampa is sitting at less than two months.
Why Invest in Tampa Real Estate?
· Residential properties in Tampa are quickly growing
· Inexpensive Real Estate
· Median Home Price is about $250,000
· Median Rent is $1,600
· 5% lower cost of living than the national average
· Ability to buy properties at lower rates to rent out to new residents of the city to improve one’s revenue
· Home to four Fortune 500 companies
· One of the fastest-growing employment hubs in the U.S.
· Excellent healthcare, education, and transportation
7. Spokane, Washington
Coming in at number 7 is Spokane, WA. It may be small with a population of 213,000 people, but it is becoming a real estate hot spot. Housing prices are very affordable compared to many other parts of the country at a median price of about $265,000 that has outstanding mortgage coverage. Spokane’s housing market is outperforming Seattle’s for the first time in nearly seven years, according to Zillow’s data. Areas north of Garland Street, the Perry District, Spokane Valley and Liberty Lake are some of the faster growing, more preferred parts of Spokane. Prices are quickly rising, so now is a good time to invest in Spokane real estate; home values swelled by over 13% in 2019. Real estate growth rates in Spokane's have nearly matched the national average over the last ten years, with an average annual appreciation rate of 0.23% through that timeframe.
Why Invest in Spoken Real Estate?
· Second most populated city in Washington
· More than 87 parks and has six community aquatic centers
· Several hip and revitalized neighborhoods with good walkability and local shops
· Economy includes: mining, forestry, agribusiness, and biotech segments
· Affordable properties
· Many buyers are leaving expensive markets like Seattle and Portland to head to Spokane
· Rising Rents
· Single-family and rental property homes are seeing good returns
· One of the top seller's real estate markets in the country
6. Orlando, Florida