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5 Reasons To Invest In Real Estate

Real estate investment offers a lot of undeniable advantages to different people. Because of its multiple benefits, it is gaining huge popularity among the masses. It is a highly cost-effective business that plays a key role in managing your financial issues.

Real Estate Investing

Real Estate
Real Estate

If you invest in real estate properties, you can see your investment working for you. A new business not only requires investment but hard work and energy too. But in the case of real estate investment, you can sit back and can lead a sustainable life without putting effort into it.

Real estate investment differs from other types of investments in many ways. The most important factor differentiating real estate investment from other investments is that it possesses a very low risk rate.

It protects one from the fear of losing money and thus appears to be the best investment option. According to real estate investors, real estate investments help one have regular cash flow and steady income.

Real estate investment benefits its investors after some time, so one must pay attention to its long-term benefits. It is of great importance to entrepreneurs and beginners as it offers its investors a better, comfortable, and luxurious lifestyle.

Real estate investment is one of the most suitable options or platforms for investing your money. There are several reasons for this, but a high return rate proves to be the most compelling reason of all.

Reasons to Invest in Real Estate:

Several reasons persuade one to invest in real estate. The most important reason for which people invest in real estate properties is they can become property owners. When you become an owner of the property, you can have several options to earn maximum benefits.

For instance, you can use it for renting purposes or can sell it to have more profits. Some of the most obvious reasons include the following:

· A better Lifestyle:

Real estate investment helps one have more comfort in his life. This results in offering him a bright future with a high-quality status life. Real estate investment is not only for specific people, and everyone can go for it to earn numerous benefits.

One must focus on different factors of real estate investment to increase his income. After investing in real estate, one gets to know about different ways that can help him increase his income.

· Financial Benefits:

One can reap several benefits from real estate investment. The most obvious benefit of investing in real estate property is that one can have financial benefits. If you have difficulty in managing your finances, you have to face a lot of problems.

Investing in real estate helps you get financially stable. It also results in offering you more and better options for investment. It assists a real estate investor in his financial issues and helps in dealing with different life problems.

Financial security is of great importance as it offers one a complete sense of protection and safety regarding his future.

· Reduction on Taxes:

Most people are not aware of this superior advantage of investing in real estate properties. Yes, real estate investment helps one by offering a great reduction to annual taxes. This advantage is of great importance as one may face difficulty in paying huge taxes.

Taxes are not only important for the government, but people also pay considerable attention to them while maintaining their budget. One needs to pay his regular taxes to earn a respectful status in society.

One of the most important ways to save money on taxes is by investing in real estate properties. Investing in real estate properties is a wiser option that helps people by offering special discounts on taxes.

People with real estate properties like rental colonies, apartments, buildings, commercial or non-commercial plots, industrial plazas, and residential areas are given a special favor regarding taxes.

· Constant Cash Flow:

Real estate investment offers one a constant cash flow because of the steady income from his properties. If you have enough money to save after paying for all of your necessities, you can have the extra money as cash flow.

Cash flow is generally called profit as it is more than the basic needs and requirements of a person. One must make use of this money effectively to have more income. If you have real estate properties, you must invest in more real estate properties to have constant sources of income.

Real estate investment is a great way to upgrade your living status. It helps people improve their life standard and offers relaxation regarding the living of their future generations.

· High Return Rate:

Real estate investment offers a high return on investment. It is a profit-rendering business that helps one enjoy higher return rates. As this investment plays a key role in providing one a higher return rate and constant income, one must go for it to pursue his dreams.

Best Places To Invest In Real Estate in 2021

A list of the best places around the world to invest in real estate in 2021

1: Boise, Idaho

  • Population and Job Growth Triple Than National Average.
  • Strong population growth.
  • Job growth 2-3 times the national average.
  • Low cost of doing business.
  • Low unemployment rate at 3.5%.
  • Forbes ranked #6 for most job growth.
  • 1-year appreciation forecast of 3.2%.

2: Dallas, Texas

  • Population Expected to Double in Next 15 Years
  • Dallas is one of the leaders in the U.S. for employment and population growth.
  • 52.9% of Dallas rents vs. 33% nationally.
  • Newly remodeled REOs (2004 or newer).
  • Properties 5% – 15% below market value.
  • 3-year appreciation forecast of 11.4%.
  • Median rental per month: $1,800.

Houston, Texas

  • Houston is the #1 Market in the US for Job Creation.
  • Housing real estate is affordable.
  • 4th largest city in the US.
  • 5%-20% below the current fair market value.
  • 12 Month ‘No Vacancy’ Guarantee.
  • 12 Month Home Warranty.
  • $75,000 average purchase price.
  • Median rental per month: $1,550.
  • 3-year appreciation forecast of 10.5%.
  • Its unemployment rate is far below the national level.
  • It’s home to more Fortune 500 headquarters than anywhere in America except for New York.
  • Massive international trade gives another big job boost to the rapidly growing city.

Atlanta, Georgia

  • Atlanta is one of the Top Rental Markets in the U.S.
  • Newly rehabbed properties with tenants.
  • Properties starting at $70,000.
  • Median rental per month: $1,500.
  • Up to $750/mo in cash flow.
  • 500 people move to Atlanta every day!
  • 2 million more people are expected by 2030.
  • 3-year appreciation forecast of 9.3%.
  • Atlanta has a growing economy that is 8th in the nation for GDP and is home to a wide variety of businesses that includes Fortune 500 companies. 
  • The relocation of payment processing giant NCR is expected to bring more than 3,500 jobs to the metro Atlanta region.

Las Vegas, Nevada

  • Las Vegas is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
  • The current metro area population of Las Vegas is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.
  • The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
  • A diversified economy is driven by health-related, high-tech, and other commercial interests.
  • The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
  • Mining constitutes the mainstay of the region’s industrial sector.
  • Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
  • No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
  • Construction is also a significant component of the economy.
  • The government is the metropolitan area’s single largest employer.
  • The low unemployment rate of 3.5% as of Dec 2019 – U.S. Bureau of Labor Statistics.
  • Rising rents.
  • The average rental income from an apartment in Las Vegas is $1,107, a 5% increase compared to the previous year.
  • The average condo or townhome costs nearly 200,000 dollars, and their prices increased 11 percent.
  • Currently, Las Vegas is a sizzling seller’s real estate market in the United States.

Orlando, Florida

  • Orlando is the fourth-largest city in Florida and the state’s largest inland city.
  • It is the center of the Orlando metropolitan area, with a population of about 2.5 million.
  • Third-largest metropolitan area in Florida.
  • Ranked #2 In America’s Fastest-Growing Cities – Forbes.
  • Orlando’s real estate has been one of the best long-term investments throughout the last decade.
  • It has appreciated by 43.67% over the last 10 years.
  • The median home value is around $260,000.
  • Strong renter’s market.
  • Median rental per month: $1,599.
  • Over 60% of the population rents.
  • Strong economic and job growth.
  • Orlando is a major industrial and hi-tech center employing thousands of people.
  • The low unemployment rate of 2.5% in Dec 2019 – U.S. Bureau of labor statistics.
  • Currently, Orlando is a sizzling hot seller’s real estate market in the United States.

Spokane, Washington

  • It is the economic and cultural center of the Spokane metropolitan area.
  • The second second-largest city in Washington by population.
  • It is a beautiful city to live in.
  • Spokane has a system of over 87 parks and includes six neighborhood aquatic centers.
  • It has several trendy, walkable, and revitalized neighborhoods with good walkability and local shops.
  • Spokane’s diversified economy includes mining, forestry, agribusiness, high-tech, and biotech sectors.
  • Affordable real estate.
  • Buyers are giving up on pricey markets like Seattle and Portland and heading to Spokane where the median listing price is $220,000.
  • Rising Rents in Spokane.
  • Median rental per month: $1,295.
  • Owners of both single-family homes and rental property are seeing good returns.
  • It is fast becoming a popular choice for homebuyers looking for a nice & attractive place to live.
  • Currently, Spokane is a red-hot seller’s real estate market in the United States.

Tampa, Florida

  • The prices of residential properties in Tampa are growing at a fast pace.
  • Affordable Real Estate.
  • Median Home Price in Tampa is around $250,000.
  • Median Rent is $1,600.
  • Currently, Tampa is a red-hot seller’s real estate market in the United States.
  • Tampa, Florida’s cost of living is 5% lower than the national average.
  • Investors can buy properties at lower rates right now and rent them out to new residents of the city to improve their cash flows.
  • Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth.
  • The influx of people into Tampa is especially occasioned by the fact that it one of the fastest-growing job hubs in the country.
  • The healthcare, education, and transportation facilities in Tampa are also impeccable.

Austin, Texas

  • Austin has a strong economy.
  • The low unemployment rate of 2.7%.
  • Growing population.
  • It is the 11th most populated city in the U.S. and the 4th most populated in Texas.
  • Affordable Real Estate.
  • Rising rents.
  • The median rent per month is $1,750.
  • Currently, Austin is a red-hot seller’s real estate market in the United States.
  • You can get investment properties in the price range of $200,000 to $250,000.
  • Austin has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.
  • Last December, the median home price increased 8% year-over-year to $405,093.
  • The Austin real estate appreciation rate in the last quarter was around 1.7%, which amounts to an annual rate of 6.8%.

Chicago, Illinois

  • Chicago was ranked first in the 2018 Time Out City Life Index (Time Out Group).
  • Strong Rental Market – Over 50% of the population rents.
  • Fully renovated single-family homes with great ROI.
  • Solid blue-collar areas with high rents.
  • High private sector employment.
  • On the UBS list of the world’s richest cities.
  • Often rated as having the most balanced economy in the United States.
  • Ranked seventh in the entire world in the 2017 Global Cities Index.
  • Home to 12 Fortune Global 500 companies and 17 Financial Times 500 companies.
  • Strong economic and job growth.
  • Affordable Real Estate.
  • Rising rent prices.
  • The median rent per month is $1,761.
  • 2% increase in Chicago’s government employment between November 2018 to November 2019 (Bls.gov).

Columbus, Ohio

  • Currently, Columbus is a red-hot seller’s real estate market in the United States.
  • Very affordable real estate.
  • The median price in Columbus is $174,109.
  • Large rental market.
  • The median rent is $1,250, which is lower than the Columbus Metro median of $1,300.
  • Ohio is landlord-friendly, so that’s good for owning a rental property.
  • Columbus, Ohio is considered a “Rust Belt” city that’s unique for a rebound.
  • It enjoys unemployment rates of around 4%, but this is phenomenal compared to the surrounding area.
  • The lower cost of living attracts residents who earn just as much here as in Chicago but don’t have to pay as much for things.
  • The sheer variety of colleges in the area means that investors can rent to the large population of students in Columbus without worrying about their property values rising and falling based on the popularity of a flagship school.

Lakeland, Florida

  • Lakeland is a principal city of the Lakeland–Winter Haven Metropolitan Statistical Area.
  • It is the largest city on Interstate 4 between Orlando and Tampa.
  • Lakeland is a transportation hub.
  • In the past few decades, tourism, medicine, insurance, transportation, and music have grown in importance.
  • More than 22,000 people moved to the Lakeland-Winter Haven metropolitan area from July 1, 2017, to July 1, 2018, according to the U.S. Census Bureau.
  • The 3.2% annual population increase earned it the fourth spot on U.S. Census’s Top 10 Metropolitan Areas in Percentage Growth list.
  • Affordable Real Estate.
  • Single-family detached homes are the single most common housing type in Lakeland.
  • Studio apartments are the smallest and most affordable for rental rates.
  • With a median house value of $155,796, house prices in Lakeland are solidly below the national average.
  • Lakeland’s appreciation rates in the latest quarter were at 1.45%, which equates to an annual appreciation rate of 5.94% (Neighborhoodscout.com).
  • The average rent for an apartment in Lakeland is $1,084, a 4% increase compared to the previous year (RENTCafe).
  • Currently, Lakeland is a red-hot seller’s real estate market in the United States.

Ocala, Florida

  • As of the 2019 census, Ocala’s population, estimated by the United States Census Bureau, was 60,786, making it the 49th most populated city in Florida.
  • It is the principal city of the Ocala, Florida Metropolitan Statistical Area.
  • In the last decade of the twentieth century, the greater Ocala area had one of the highest growth rates in the country for a city of its size.
  • The median household income is around $37,442.
  • Ocala is also a great city to live in for families. The median age is about 38.7.
  • When you buy real estate in Ocala you are investing in an area that is situated between three huge cosmopolitan centers, namely Tampa, Orlando, and Jacksonville.
  • With a median house value of $162,607, house prices in Ocala are solidly below the national average.
  • The average annual real estate appreciation rate over the past decade has been around 2.28%.
  • The average rent for an apartment in Ocala is $1,071, a 4% increase compared to the previous year when the average rent was $1,032 (RENTCafe).
  • Currently, Ocala is a red-hot seller’s real estate market in the United States.

Birmingham, Alabama

  • With an estimated 2019 population of 209,403, it is the most populous city in Alabama.
  • Birmingham is the seat of Jefferson County, Alabama’s most populous and fifth-largest county.
  • The Birmingham-Hoover Metropolitan Statistical Area is the most populous in Alabama.
  • Being home to several colleges and universities, Birmingham has a large pool of student renters.
  • Strong and diversified economy.
  • Birmingham is a leading banking center and a powerhouse of construction and engineering companies.
  • Very affordable real estate.
  • With a median home price of $64,840, house prices in Birmingham are solidly below the national average.
  • The average rent for an apartment in Birmingham is $968, a 3% increase compared to the previous year (RENTCafe).
  • Currently, Birmingham is a red-hot seller’s real estate market in the United States.

Durham, North Carolina

  • Durham is one of the best places to live in North Carolina.
  • It offers residents a dense suburban feel and most residents (about 52%) rent their homes.
  • With a median home price of $256,993, Durham real estate prices are well above average cost compared to national prices.
  • The U.S. Census Bureau estimated the city’s population to be 278,993 as of July 1, 2019, making it the 4th-most populous city in North Carolina,
  • Also, the 79th-most populous city in the United States.
  • Durham is also a national leader in health-related activities, which are focused on the Duke University Hospital and many private companies.
  • Duke University and Duke University Health System are also Durham’s largest employers
  • Being home to several colleges, universities & research centers, Durham has a large pool of student renters.
  • The median household income is $54,284 and per capita income is $32,305.
  • The average rent for an apartment in Durham is $1,181, a 3% increase compared to the previous year (RENTCafe).
  • Durham has a track record of being one of the best long-term real estate investments.
  • Average annual home appreciation rate of 4.03%.
  • Currently, Durham is a seller’s real estate market in the United States.

Charlotte, North Carolina

  • Affordable real estate.
  • The median home price is $252,438.
  • Charlotte’s home values have gone up 5.3% over the past year.
  • Charlotte’s appreciation rates in the latest quarter were at 0.52%, which equates to an annual appreciation rate of 2.10%.
  • The average rent for an apartment in Charlotte is $1,259, a 6% increase compared to the previous year.
  • The Median household income of a Charlotte resident is $53,274 a year.
  • It is one of the best places to live in North Carolina.
  • Ranked one of the best places to live in the United States for 2019, according to U.S. News & World Report.
  • The Queen City is 34th in the best places to retire.
  • It offers residents an urban-suburban mix feel and most residents own their homes.
  • The city has a mixture of owners and renters, with 52.07% owning and 47.93% renting.
  • The city is the cultural, economic, and transportation center of the Charlotte metropolitan area, whose population ranks 23rd in the U.S.
  • Charlotte has become a major U.S. financial center with the second-most banking assets after New York City.
  • Between 2018 and 2019, Charlotte saw a 2.3 percent increase in jobs.
  • Currently, Charlotte is a seller’s real estate market in the United States.

Colorado Springs, Colorado

  • The median home price is $323,194.
  • Home values have gone up by 7.6% over the past year.
  • Currently, it is a red-hot seller’s real estate market in the United States.
  • Single-family detached homes are the single most common housing type in Colorado Springs.
  • Colorado Springs’s appreciation rates in the latest quarter were at 1.18%, which amounts to an annual appreciation rate of 4.80%.
  • The average rent for an apartment in Colorado Springs is $1,191, a 6% increase compared to the previous year.
  • The Median household income of a Colorado Springs resident is $54,228 a year.
  • Colorado Springs had a 5.5-percent gain in nonfarm jobs between December 2017 and December 2018, which ranked fourth out of 388 metros, according to a survey from the U.S. Bureau of Labor Statistics.
  • It was ranked as the fifth-best city in the United States to find a job in 2019, according to a survey released by Wallethub.com.
  • In 2018, U.S. News & World Report ranked Colorado Springs and the most desirable place to live in the U.S.
  • Currently, Colorado Springs is a sizzling hot seller’s real estate market in the United States.

Denver, Colorado

  • Growing population – It is the 19th-most populous city in the nation.
  • The current metro area population of Denver in 2020 is 2,827,000, a 1.33% increase from 2019 – Macrotrends.net.
  • Ranked as a Beta world city by the Globalization and World Cities Research Network.
  • In 2016, Denver has named the best place to live in the United States by U.S. News & World Report.
  • Denver is in the top 10% nationally for real estate appreciation.
  • 3.8% 1-yr forecast till Feb 2021.
  • The average number of days on market is 83.
  • Colorado has had the lowest rate of mortgage delinquencies in any state.
  • A third of the Denver metro area rents.
  • Denver South is home to 7 Fortune 500 companies.
  • Denver was named 6th on Forbes Magazine’s “Best Places for Business and Careers.”
  • A low unemployment rate of 2.3% as of Dec 2019 – U.S. BLS.
  • The average rent for an apartment in Denver is $1,674, a 3% increase compared to the previous year.

Raleigh, North Carolina

  • Raleigh is considered one of the best cities to live and work in the US.
  • The median home price is $290,270.
  • Raleigh home values have gone up by 2.9% over the past year.
  • Currently, it is a seller’s real estate market in the United States.
  • Single-family detached homes are the single most common housing type in Raleigh.
  • Raleigh’s appreciation rates in the latest quarter were at 1.31%, which amounts to an annual appreciation rate of 5.34%.
  • The average rent for an apartment in Raleigh is $1,238, a 6% increase compared to the previous year.
  • Between 2017 and 2018 the population of Raleigh, NC grew by 1.19% and its median household income grew from $64,660 to $65,695, a 1.6% increase.
  • The Raleigh, North Carolina area is the highly-rated area in the country for information and technology job opportunities. It is second to Austin, Texas, which ranks #1.
  • Raleigh & Durham have lower unemployment rates than the national average and the region’s annual average income is above the national average.

Phoenix, Arizona

  • There are several other reasons to consider investing in Phoenix real estate.
  • Affordable real estate.
  • The median home price is $269,175.
  • Phoenix home values have gone up 8.0% over the past year.
  • Currently, it is a red-hot seller’s real estate market in the United States.
  • Phoenix’s housing market has been one of the highest appreciating communities not only in Arizona but in the nation as well.
  • It’s more reasonably priced housing, lower cost of living, available workforce, and stable climate forecast a growing economy and stronger housing growth.
  • Prices are up 17.8% since two years ago and 145% since prices bottomed out in May 2011.
  • The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession.

Seattle, Washington

  • Ranked as 10th in the nation in overall prospects of the “Emerging Trends in Real Estate 2020” – By Urban Land Institute.
  • They describe Seattle’s real estate as “in expansionary mode” and the report was jointly produced with PwC consultants.
  • According to Mashvisor, the decreasing home values in Seattle demonstrate the real estate market is restoring balance and returning to a healthy state.
  • The average rent for an apartment in Seattle is $2,169, a 6% increase compared to the previous year – RENTCafe.
  • 176,400 or 54% of the households in Seattle, WA are renter-occupied while 147,046 or 45% are owner-occupied.
  • According to many experts, Seattle remains one of the top places to invest in real estate.
  • It may be very expensive, but Seattle’s demographics & economy make sure that it remains a profitable and popular real estate market in the nation.
  • More people move to Seattle each year.
  • The U.S. Census places Seattle fourth for growth among the 50 biggest U.S. cities.
  • Seattle is a great city for families to start and grow, with a lot of quality public schools and lush green scenery.
  • It has a diverse mix of neighborhoods to choose from  – from tree-lined streets to urban condos and townhomes.
  • Seattle’s one of the greenest cities in the U.S.
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Alborz Fallahhttps://washwm.com
I am a UK-based journalist, a former columnist, and author of many famous blogs, and news websites. I'm also interested in all things tech, science, sports, gadgets, and entertainment related, and likes to yo-yo in his free time.
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