Hot Spots for the Real Estate Investors
The real estate game is currently very hot. Taking time to investigate where one will retire may pay off in a big way. For starters, the quality of life after retirement will be greatly enhanced. Moreover, there will be a substantial return on the realty investment.
The fact that the Baby- Boomer generation started retiring from 2011 is a good indicator of the opportunities available in the property market. This trend is set to go on at least until 2029. It simply means that there will be plenty of demand for both the rental and the houses for sale, through these years. Here is a list of the best countries and cities for investors to benefit from. The rates of return are derived from the data by the EU.
Budapest, the capital of Hungary, has increasingly transformed into a hub of vibrant realty and competitive property market. Investors from abroad are coming in by droves, taking advantage of the existing financial recovery from recession. International firms are engaged in a cut- throat competition for the available market share.
The capital has been called “Paris of central Europe”, and rightly so. Government support for the renovation of the city has made it a viable destination for investors. This, in return, has paved way for an opportunity for investment in the prime locations, for reasonable pricing. The return rate is 269%, meaning that you can expect to reap big from a property investment that takes several years.
The land of numerous lakes is also a top contester for investment in the prime real estate. The average prices for properties is around $160,000 which means that the relatively cheap realty is ripe for investment.
When compared to the average wages, these prices are astoundingly low, given that the country is in the Eurozone. The rental potential of the property in the country is quite satisfactory, with a return rate of 273%.
This is another great destination for realty investors, given the diverse cultures in the country, and variety of beautiful sights. The climate is ideal for getting a second home. Moreover, it has one of the best capital cities in Europe, Ljubljana. Ever since the integration of the EU, the prices for real estate have become more competitive. Comparing to the neighboring sovereigns like Croatia and Italy, they are very favorable.
The average price of a small house is bound to set you back around $40,000. A bigger house, in the range of maisonettes and sizable bungalows, go for 75,000 or thereabouts. The rate of returns of a typical real estate investment is 278%.
Data from the European Union shows that Slovakia has the fastest growing economy as compared to the rest of Europe. It is one of the most recent entrants to the union, and has a huge shortage of properties. The result is that the existing properties are soaring in the value, making it very lucrative to engage in real estate in the country.
The old city of Bratislava, (which has been famously referred to as the Mini- Prague), has plenty of opportunities for investment. This is in contrast with the rural areas, where beautiful homes are being sold at throw- away prices. A brand new chalet tucked away in the mountains will only cost around $90,000. The return rate of properties in Slovakia is a whopping 326%.
Belgium, famous for its warm, chocolate- loving people, is the place where property ownership is low. This means that rentals bring in a lot to the realty industry. In addition, the price of housing, relative to the wages of the populace per capita, is one of the lowest in the whole Western Europe. An average house goes for around 120,000 USD.
People are mainly concerned with owning properties abroad, hence there is a huge potential for the investors to maximize on the rental properties. Belgium has often been cited as the capital of Europe as a whole. People are keen on investing on retirement homes in the country. Most are making huge profits, and the return rate of the investments is pegged at 340%.
Sweden is the largest of the Scandinavian countries. Ironically, it is very lightly populated, despite the fact that it is exquisitely beautiful, especially in the summer time. The great thing about properties in this country is that they are relatively cheap.
A decent house, with all the amenities and room for more development, goes for around $85,000. This is one of the cheapest market price for homes in Europe. The Swedish investment return rate is slightly above that of Belgium, at 352%.
4. The Baltic States
Estonia, Lithuania and Latvia are the closest states to the Baltic Sea. They are close neighbours to Belarus and Russia. They are endowed with old towns, which are currently commanding huge interest from investors from all around the globe. Since they joined the EU back in 2004, they have experienced booming property prices which are not showing signs of slowing down.
Rental investors are having a great opportunity, since the wages have been on a steady rise.The states are also great tourist destinations, and they have a flat- rate tax regime. Moreover, the price of housing is fair, and the rate of return is approximately 356%, an index that is similar to the Swedish.
This is one of the cheapest places to live, in Europe. Everything from food to land is competitively priced. The country is recovering from a financial recession, which means that the property market was quite shaky a few years back. However, there has been a strong growth of the real estate sector over the last years.
In Portugal, a decent, four- bedroom house costs about $150,000. It is a wonderful deal, given that the wages are also very favorable. Moreover, the return rate for investments is around 360%.
The prospects of real estate profitability in Poland is the highest in Europe. One factor that contributes to the projected success in the sector is the heavy investment by dozens of multinational corporations in the country. The most prominent of these are GSK and Tesco.
Secondly, the EU funding has awarded the tiny country a lion’s share of funding, as compared to other countries in Europe. It is likely that Poland will get as much as 90 billion dollars, within the coming eight years. This means that investment in niches like realty will peak, as a consequence of improved infrastructure. The rate of return in the country is set at 393%.
The country has a pending application to be a member of the European Union. Normally, during the occasion of a pending integration into the union, and even after that, the real estate sector in the economy performs exceptionally well. The good news is that the price of renovation of a house in the countryside is as little as 8,500 USD.
The massive regeneration process that is underway is set to give investors really high returns. Romania has the most impressive return rate of 414% that is set to rise, with the wonderful economic prospect in the country.
10. Las Vegas
Vegas has the highest foreclosure rate in the US. It is estimated that one in every 89 homes is being foreclosed. This scenario has caused the prices of the housing to tank. Houses that were costing $200,000 just a couple of years ago are going for half the price, currently. The city has been referred to as the buyer’s paradise; but unfortunately, the buyers are few and non- existent.
The reason why Las Vegas is going hot is that there is a projected turnaround of the scenario, as the economy struggles out of the devastating recession. There is a very high chance that the real estate agents who are buying undervalued properties in the current crisis are poised to make bumper profits in just a few years. Therefore, Vegas is still a hot contestant for the property market, for the remaining part of the decade.
Orlando has also had its share of the harsh weathers. For instance, the rent has risen by only 0.2% in the past year. This was brought about by the most recent condo- conversion boom, which went bust. The remaining owners of properties, who were not foreclosed upon, are opting to rent theirs out. Like Las Vegas, the same fate befell the city, which was a promising tourist destination as well.
The great thing about this is that there is a projected turnaround of the property market. It is experiencing the same thing as Las Vegas; availability of cheap housing and the lack of buyers. However, clever speculators are buying the undervalued properties in anticipation of the projected return of the market, even as the tourism sector picks up.
8. Colorado Springs
The average rent in Colorado Springs is $713, which is quite low compared to places like Denver. However, it has only increased by only 0.8 percent in the past year. When the rates for rent are this stable, and they start out low, it means a lot for investors. The renters are certainly not stepping into the markets that have been pressured by the recession.
A key factor that has contributed to this conducive atmosphere for real estate investment in Colorado Springs is its ability to weather recession. Here, there are entities such as Fort Carson, The Air Force Academy and other institutions which are resistant to the financial recession.
Memphis has had its share of problems, especially in the past year. The heavy rain and flooding affected the weak housing market very badly, in a spiral that saw the prices of most properties drop 8.5% by the end of the year. However, the great thing about Memphis, and the whole of Tennessee, is that it has a very good treatment for tenants.
There are a few cities that can match the low average rent of $682, and the vacant properties are a sizeable proportion, above 6 percent. The nearby Knoxville boasts an average rent of $596 per month, yet there is a limited vacancy rate of only 5.8%. This shows that Memphis is one of the best places to invest in realty.
Another hot spot that is beckoning investors for rentals is Jacksonville. The city, like Vegas, was really hammered by recession, which saw the housing prices slashed almost by half. To make the matters worse, there is a very high unemployment rate in the city.
New buyers are hard to come by, a fact which saw a 9.5 percent fall in the past year alone. The rental market, however, is as vibrant as ever. Jacksonville is better than Las Vegas in that it is more stable economically.
Houston is unique when compared to other cities mentioned above. It is not struggling with as much debt as the others. Rather, it is the expansion rate of the city that is making it a dream destination for someone who is on the lookout for rental properties to invest in.
It has the second highest vacancy rates (10.2%) in the nation, and the housing prices have dropped, while rental rates are rising in a healthy pace.
At this point, Atlanta is still struggling out of recession. Housing prices have already been chopped by a third, yet the city has one of the highest expansion rates in the country.
The great thing with Atlanta is that there are numerous institutions of higher learning in the vicinity, not to mention Time Warner and Coca- Cola. These giants are providing great bases for recovery, while building on the rental house potential for great returns.
When you combine low rates, continued rent growth rate and ample vacancies, then throw them into a college town, you get one of the best chances to make huge profits. This is the scenario in Columbus, Ohio.
The city is insulated from the numerous economic upheavals by government jobs. The fact that the unemployment rate is at 7.3% is a great indicator of the potential for rental apartment demand.
Phoenix has the same credentials as Houston: vast room for expansion, coupled with one of the biggest vacancy rates in the country.¬†There is a rise of up to 2.1% of housing sales in the small city. There are multiple prospects for the real estate sector.
The average rate of rentals in Tulsa is a measly $580 per month, and the vacancy rates are at a whopping 8.3%. This makes Tulsa stand out from the crowd, especially considering the Oklahoma jobs.
Take a good look at these real estate prospective and make the right choice towards the high return on investment.