We look at the top five US cities for smart investors to buy in
Those with a keen eye for property investment will already know that now is an excellent time to purchase land and property in the US as prices are 70% less than their 2006 peak, but the market is slowly starting to recover and valuations are increasing year on year.
But where is the right place to invest? We spoke to Martin Sadler, Operations Director at Qualitas Property International, one of the UK’s top professional real estate investment companies, to see where buyers should put their bucks.
5. New York
Many foreign buyers have started looking at the Big Apple for investment, and with good reason.
Overseas buyers have been drawn to New York in recent times as, unlike in other cities property values in NYC were protected during the market crash, but, like most major world cities property is always desirable.
This is not for the average investor as the opportunities are more expensive but there are good residual values.
Martin’s pick: ?We can purchase developer discounted apartments just off 5th Ave and Central Park for $600k, have a tenant paying and still achieving 5-6% net rental income?
Party city, Miami has obvious appeal for investors, with its current status as the world’s most go-to party destination ensuring rentals are always popular.
There are still deals to be had here, with the ability to purchase incredible homes which are already tenanted and will consistently achieve a secure rental income whist prices increase.
This is the higher end of the market in Florida, with heavy competition from South American investors, so finding a strong investment property is becoming increasingly difficult in a city that is seeing property values increase, and that offers top tier rentals.
Martin’s pick: ?We can pick up 3 bed luxury townhomes in gated community at $102,900 (70% discount from 2006 peak values) with long term tenant generating $8000 per year rental income?
The sunshine state offers the best investment area with low property prices, and the tourist hotspot, Orlando is our second Floridian location in the list.
Orlando is still one of the most popular destinations in the States to visit, with Disney remaining one of the most popular tourist destinations in the world.
However, what makes Orlando one of the best places to buy now is that it saw one of the largest drops in prices during the crash, meaning that prices will increase dramatically over the next 5 years, and there is a consistently strong rental demand. This means now you can buy a property up to 70% under its peak values in 2006, with likely massive gains.
Martin’s pick: ?We can purchase a 2 bedroom condo in Orlando with up to a 70% discount from peak prices in 2006, currently for $59,000 (50% below construction costs) with a tenant in place generating between $10,000 – $12,000 a year. Expect prices to increase strongly over the next 5 years, as these deals disappear and the market returns to levels above the cost of construction?
2. Cape Coral
Cape Coral is the third Floridian choice, and is a city which consistently ranks in the top ten places to open a business, with CNN calling it the fifth fastest growing US city in the past decade.
The land in Cape Coral is currently up to 75% under its peak values since 2006, meaning that once construction starts, land values in desirable areas will increase dramatically. Land in Cape Coral has the potential to at the very least double in value in the next 3-5 years making it a sound investment.
Martin’s Pick: ?Cape Coral – Land investment focus, we can currently purchase a 10,000sq.ft land plot with full planning permission to build a 3-4 bedroom home for just $15,000. This same plot would have sold for $90,000 back in 2006!”
With a growing population of young professionals and over 5.5 million residents, the greater Atlanta area has been the fastest growing metropolitan market in the United States for the past decade. It has a rapidly growing economy and tax efficient policies which make this area one of the healthiest residential and investment markets in the States.
Forbes magazine ranks Atlanta as the number one home market in the US and ranked Atlanta as the No. 1 rental market in the country. As the capital city of the State of Georgia, Atlanta is the travel and business hub of the Southeast of the States and boasts some of the strongest economic indicators for substantial short-term cash flow and long-term potential capital growth.
Martin’s pick: ?In Atlanta we can buy a 4 bedroom house built in 2006 for $90,000, renovate it and have tenants in place, which can achieve an annual rental income of over $12,000?
For further information visit www.qualitasproperty.com