If there’s one thing that the pandemic has taught all of us, it’s to make sure we’re financially secure so that when a crisis happens, we have nothing to worry about. Emergency funds, savings, mutual funds, bonds, stocks, insurance, any form of financial security is better than nothing at all.
One of the areas of investment you can put money on is real estate. Here are a few reasons why you should consider putting money into real estate this year.
Why Should You Consider Investing in Real Estate This Year?
Investing in real estate, just like any other investment, has certain risks. But the good thing about it is that it is a physical asset that holds its value and appreciates as the years go by because of limited supply.
Competitive Return on Investment
The US real estate market logged a six-year high in September 2020 with a 6.7% increase in home prices. This proves that real estate is a bright spot even in a dark pandemic because of high demand and low supply. The cash flows from renting out properties help solidify it as an investment with competitive ROI.
Decreased Rate of Market Fluctuations
Because people will always need a place to live in, the real estate industry is a lot more resilient to economic changes compared to other investments.
Attractive Financing Options
Investing in stocks involves a higher risk which makes borrowing money to fund investments a lot more difficult. Comparatively, since real estate is much more low-risk as an investment, banks, and lenders feel more confident in lending up to 95% of the property value since it is a physical asset that can hold its value.
Real estate investments are controlled by you. They don’t require brokers or managers to make it grow. You have free reign over how you want to manage your assets.
Where Should You Go for Real Estate Investments?
Now that you’re armed with the right reasons, you now need to know where best to bring your real estate investment funds. Here are ten places in the U.S. that will get you good returns.
1. Boise, ID
Realtor.com ranked the Boise housing market as the number one in its 2020 forecast. Its strong population growth, job growth at 2 to 3 times the national average, low unemployment rate, and low cost of doing business make Boise still the number one real estate spot to invest in.
2. Dallas, TX
Dallas’ real estate market offers a wide range of investment options because of its diverse economy, especially with the 14% increase in demand for rental units between 2019 and 2020.
3. Houston, TX
Another Texan city makes it to our top 3 because Houston is just one of the all-time best places to live in and invest in real estate. It is the 4th largest city in the country and has the highest job creation market in the US.
4. Atlanta, GA
If you’re a rental property investor and you’re looking for prospective properties that are attractive and appealing, ATL is the place for you. It is one of the country’s 10 most productive states that makes significant contributions to the nation’s GDP. Because of this, it is considered as a booming economy with much to offer in properties as it expects 2 million more migrants by 2030.
5. Las Vegas, NV
Historically, Las Vegas has gone through several economic booms. Its real estate market is predictable and stable which is attractive to property investors. With its friendly business environment, Las Vegas is experiencing a 13% home value increase in its year-over-year gains.
6. Orlando, FL
While Orlando is well-known as an entertainment and tourism destination, it is also one of the most stable housing markets in the US today. With strong residential and holiday property markets, investors are looking to get a piece of that action and get some good returns on their investments.
7. Spokane, WA
Spokane may be small – with only 213,000 population — but its steady rise as a real estate hot spot is undeniable which is why it is on our list. With a median price of only $215,000, house prices in Spokane are relatively cheap and easier to move around.
All forms of investment involve a certain degree of risk. You just need to know which ones you can tolerate. Because of the high demand and low supply, real estate is one of the more secure investments that anyone can add to their portfolio. We advise you to do your research on the matter before making any decisions. But if you do decide to jump into it once you have all the facts, it will be one of the investments that will serve you best.