Where Should I Invest in Real Estate Now - Energimine

Where Should I Invest in Real Estate Now

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With the eruption of the COVID-19 pandemic, many were left quite financially insecure, but the real estate market flourished, making real estate investors and homeowners the beneficiaries in these harsh economic times. In fact, homeowners who had mortgages experienced a collective $1 trillion increase in their equities in the United States between September of 2019 and September of 2021.

The pandemic has had an effect on both the demand for housing and its supply. Mortgage rates decreased, which reduced the costs of borrowing money to purchase a house, and increased demand. With all of this in mind, let’s take a look at some of the best places to invest in real estate in 2022 and beyond. 

If you truly want to stay in the loop about the latest real estate market trends and best practices during the pandemic economy, sign up for the Insider Weekly newsletter. But without further ado, let’s take a look at where you should invest in real estate right now to earn good returns on your money.

Charlotte, North Carolina

Charlotte has experienced massive growth in job expansion and population growth in the tech and financial industries. What’s more, its 25 universities and colleges power a young workforce, while its low property taxes make it an easy place to purchase property in comparison to its rival tech hubs. 

Overview

  • The average rent for an apartment has risen 6% to $1,259.
  • The median price for a home is $305,570, an affordable number given the 16.4% increase over the last year.
  • Its financial prowess prompts tech investment as the second most powerful banking center in the United States after New York.
  • Charlotte enjoys a mix of renters and owners, with almost 48% of the population being comprised of renters. 
  • The U.S. News & World Report named Charlotte one of the best places to live.
  • Jobs in Charlotte are steadily increasing, with the city seeing a 2.3% increase in employment between 2018 and 2019. Its projected job growth over the next decade is expected to be 45.2%, which is significantly higher than the 33.5% national average. 

Dallas, Texas

One of Dallas’ economic strengths is the diversity of its economy, since the city provides jobs for people of every income level. It has one of the country’s lowest homeownership rates, since rent is more affordable than buying, and demand for rental units has increased precipitously in recent years. 

Overview

  • 52.9% of residents in Dallas rent their homes or apartments, compared to the national renting rate of 33%. 
  • The city’s population is steadily growing. In fact, Frisco, which is just 20 minutes away, is ranked 6th in the nation’s fastest-growing cities according to WalletHub.
  • The average rent for an apartment in Dallas is $1,2176, which is a 2% increase from 2020.
  • The median home price in this city is $259,621, rising 12.3% over the past year but still staying below the national average. 

Las Vegas, Nevada

It’s no secret that the market in Las Vegas has been quite volatile, experiencing perhaps one of the nation’s greatest busts during the Great Recession. However, it’s had an incredible recovery, based on a range of factors like the absence of state taxes, a low cost of living, and a business environment that continues to diversify. What’s more, it’s an easy move for Californians who are able to work remotely. 

Overview

  • There are no state taxes for corporations or individuals in Las Vegas, and there are few other forms of business-related taxes compared to other cities. 
  • The city, long driven by its hospitality and tourism industries, has diversified into high-tech, health, and commercial real estate industries. 
  • Las Vegas continues to experience unprecedented population growth. The most recent census found a 14.53% increase in population since 2010, with the city’s metro area now housing more than 2 million residents. 
  • The city is enjoying one of the nation’s hottest seller’s markets right now. 

Austin, Texas

Rising prices, high demand, low inventory, and a soaring job market all add up to a recipe for a housing market boom in Austin, Texas. The city has offered a range of tax breaks to companies that move to this area, and Apple, Samsung, and Tesla have taken Austin up on these offers. Tesla fully relocated, while Apple set up large offices in the city. 

Relocations to Austin last year were 45% of what they were in 2020, and Texas continues to bring in new residents. 

Overview

  • The real estate market in Austin is a good choice in the long term. The city’s home values have experienced an appreciation of almost 90% since 2012. 
  • Rents are rising steadily, but the median rent each month is an affordable $1,431.
  • The cost of living is significantly lower in Austin than it is in San Francisco.
  • The unemployment rate in Austin is about 4.2% lower than the national average. 

Raleigh/Durham, North Carolina

The Raleigh/Durham area is one of the best places for real estate investment in 2022, partly due to its high-tech jobs in the Research Triangle of the area. While about a third of Americans are renting their homes, the rental rate in Durham is 52% and 43% in Raleigh. This is mostly due to the large population of students in the area. It’s also a result of the young demographic that has moved to the area for work. 

Overview

  • Between 2017 and 2018, Raleigh’s population experienced a 1.19% growth, while the median household income grew to $65,695 from $64,660 – a 1.6% increase.
  • The average rent for an apartment in Raleigh is $1,287, which is a 3% increase from 2020.
  • Raleigh and Durham experience lower unemployment rates compared to the national average, while the average annual income for these areas is higher than the national average. 
  • Single-family detached homes are the most common style of housing in this area. 
  • There are plenty of jobs in the Research Triangle – Raleigh is, in fact, second only to Austin in terms of job opportunities in the technology sector. 
  • The median prices for homes in Raleigh and Durham are $340,303 and $304,217 respectively. These values have steadily increased over the last 2 years. 
Hand of broker showing to client where to sign signature contract

Why You Should Invest in Real Estate

You don’t have to have a particular financial status or be a certain type of person to invest in real estate. If you’re looking to diversify your investment, grow your portfolio, or enjoy capital gains and cash flow, then we suggest you invest in real estate. 

Here are some of our top reasons why you should become a real estate investor. 

Real estate value appreciates

If you invest in a property for long enough, it is very likely that that property’s value will appreciate. While there are various factors that influence this, most of the time, you aren’t going to experience depreciation in value. Buildings and land mostly appreciate, which makes your investment worth more than what you paid for it. 

You can also increase your property’s appreciation by improving or renovating your property. Whether you renovate a rental property or outright purchase an undervalued property and fix it up to sell, you can increase the value of a home faster than the occurrence of natural appreciation, which provides you with a greater return on your investment. 

It’s a tangible asset

When you invest in things like stocks or bonds, which are intangible assets, you only have a piece of paper to show for your investment. You don’t really own anything, and if the stock market crashes, your piece of paper could be worth almost nothing. 

However, when you invest in real estate, you’ll have an asset that’s tangible. Values might decrease and increase over the years, and while there’s no guarantee that they won’t fall, tangible assets are still worth something. You will still have a property that you can sell if you have to get out of the investment. 

You’ll be able to leverage your equity

As you pay off your mortgage balance and/or renovate your property to increase its resale value, you will be able to leverage the equity to improve your investments. Your property’s equity is the difference between your home’s value and the amount that you owe on your mortgage. The difference between these values equates to your profit. 

If you decide to keep the property, you won’t be able to use all of its equity, but you might be able to take out a maximum of 80% of the property’s value, using the leftover amount to invest in more real estate. This is an excellent way to increase your portfolio without waiting until you have saved up enough money for a down payment of 20% – 30% on another property. 

Wrapping Up

If you are considering exploring the world of property investment but don’t know where to start, consider investing in the areas mentioned above. They each have great potential for their own reasons and are great places for beginners to start growing their property portfolio with as little risk as possible.

Starting your journey in real estate doesn’t have to be difficult or daunting if you know where to look and how to go about putting your money in the best place right now. We hope that the above information has been useful in growing your property portfolio and that the returns on your investment will be fantastic.

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