How to find best place to buy investment property today? The world is shrinking before our eyes and with the expansion of the low cost airlines most people can travel to destinations that their parents would only have dreamed of 30 years ago. This has opened up the availability of making property investments in many cities or even countries which is good news for investors because there are always rising markets, flat markets and occasionally declining markets (as in the UK at the time when there was 15% interest rates).
Obviously I can’t tell you exactly what is the best place to buy investment property because the options change year after year. However, there are, as in every business, so called evergreen opportunities. It’s always fine to take a closer look at locations in Florida, Arizona, California, Atlanta and Philadelphia for sure. It is recommended to buy properties in areas where young people congregate, especially near colleges and military bases. South Florida is on its peak right now due to good neighborhoods and renting easiness. $1,600-$2,000 month is quite typical and Cash on Cash retuns of 8%+. Generally condos are not recommended now due to the high competition (many condos available for lease). The second home markets are a great deal right now (for long-term renters, vacation rentals or property for yourself when retired). Investors are buying mainly single family houses in good neighbourhood. Generally speaking properties located close to water are designated for seasonal leasing and cost much more. Best place to buy investment property are rather areas with working class families and stable population (they aren’t able to buy right now but require a place to live). Consider areas of Boynton Beach, West Palm, Lake Worth, Palm Beach Gardens, and Wellington.
Once you have decided which particular location is right for property investment then you have to decide which is the best place to buy investment property. These questions can help you in taking a decision:
Can the real estate company guarantee all legalities are in place to ensure full ownership free from all encumbrances?
Is permission firmly in place and the property has been built to the plans submitted?
What is the experience of the builder or estate agent that you are dealing with? Do they have a history of delivering this quality of product on time and to the right specification?
Comparison to other similar properties in the area?
Are you happy with the specifications and build quality?
Will the property be easy to sell o ?
What is the distance and ease of travel from airports and amenities?
What has been the recent movement in prices and what is the forecast for the future in the area?
What is the current and likely future demand and rental figures being obtain for similar properties?
Is the purchase deal attractive in terms of discount, low deposit, rental guarantee and/or other package from an investor’s point of view?
Would you stay and live in the property?
If you can answer “yes” to most of these questions then you might be happy that others will also and you are finally ready to recommend the property to your clients.
Here’s the list of best cities to buy cheaper investment property in USA in 2013 and upcoming 2014:
Las Vegas – Average home price (2013): $130,000; Gross rent (2013): $960
Detroit – Average home price (2013): $94,800; Gross rent (2013): $760
Warren – Average home price (2013): $105,000; Gross rent (2013): $730
Orlando – Average home price (2013): $166,000; Gross rent (2013): $1080
Bakersfield – Average home price (2013): $129,000; Gross rent (2013): $820
Tampa – Average home price (2013): $147,000; Gross rent (2014): $900
Phoenix – Average home price (2013): $148,000; Gross rent (2013): $930
Fort Launderdal – Average home price (2013): $190,000; Gross rent (2013): $1,150
Rochester – Average home price (2013): $155,000; Gross rent (2013): $950
Stockton – Average home price (2011): $150,000; Gross rent (2011): $910
The final decision on what is the best place to buy investment property is always up to you. Take your time to learn the art of investing. Don’t rush but don’t miss great opportunities as well.