Real estate investment has always been wealth building opportunities; however; many people are still scared of it. The real estate sector is bound to scare you, as these investments are expensive and the amount you would be investing will probably be manifold of your annual income. I often come across a friend or a relative who has incurred losses in real estate, but I also know many who would like to invest in this business as well.
Real estate investments are indeed risky; however, proper research, long-term investment horizon and a bit of luck can help you gain huge wealth. Also, choosing the right location for your investment helps. A property located in a city with good infrastructure, industry potential, suitable climate and population growth are likely to give you better returns for your investment property.
Based on various research and parameters, I have listed the topmost real estate investment opportunities in the US.
- Dallas: Dallas offeres one of the highest property appreciations despite having higher rentals to property value ratio. An average investor tends to generate 20% unleveraged return excluding expenses for his residential investment in Dallas thus making it the top most investment opportunity in USA.
- Denver: Denver takes a close 2nd slot, falling slightly behind Dallas. Denver has received the strongest residential appreciation value among all major markets. In the Denver metro region itself the residential prices grew by whopping 13.4% Year on Year (Yo)Y.
- Miami: Miami is one of the three golden cities within Florida State which offers good returns to real estate investors. The properties in Miami have offered an impressive 18.6% return YoY for the investors.
- Houston: This is one of the most populous cities among the top investment destinations within the USA with a population of 2.2 million. The returns in Houston have been in excess of 18.5% YoY for some the investors.
- Atlanta: Real estate investors in Atlanta received a handsome return of 16.4% last year with gains across both cash flows as well as property valuations.
- Tampa: Tampa is a neighboring city of Atlanta and just like its neighbor, Tampa offered an excellent return of 16.4% last year driven by strong cash flows.
- Detroit: Detroit was a traditional haven for real estate investors due to its strong industry presence; however, its charm has gradually faded. In fact, in Detroit you can still get a residential property at a price lower than that of a used car. With a 16.2% returns in past year, Detroit is making a comeback of sorts in the real estate investment charts.
- Austin: Situated in the state of Texas, Austin has witnessed a tremendous rise in real estate valuations especially in the Austin Metro area. Property values have jumped by over 9% for both new as well as existing projects. With inclusion of cash flows and depreciation, a handsome return of 15.6% was generated in last year by the residents of Austin.
- Las Vegas: Las Vegas is not only hot in climatic conditions, but also in property returns. Investors have witnessed a robust cash flow due to lower property prices and higher property rentals, giving a 15% Return YoY.
- Orlando: Last year, the city witnessed a decent 14.9% return due to higher than average rental prices.
If you read my previous articles, you may have noticed i have not stated Buffalo, NY in the list. To me that is a personal location that i have personally gained experience in and see a lot of growth and potential. It is just in its own category by itself. Aside from that, i hope that this list was helpful to you guys for your future investments. I have plans to purchase property in those areas in the near future after a few of my current deals have gone through.