With the American housing market set to take a sharp dive, investing in real estate is a no-brainer. According to the Federal Reserve Bank of Dallas, due to a sharp rise in mortgage rates, America’s home pricing is set to drop by as much as 20% in 2022, and in times like these, one must remember the cardinal rule of investing; buy low and sell high.
When it comes to investing, real estate is usually a safe investment with good returns, offering both long term and short term investment opportunities. There are many ways to make money off real estate! You can buy a property, repair and renovate it and then sell it for a higher price. This is known as House Flipping and it can be quite profitable. The average real estate flipper flips about 2 to 7 homes a year. You can even purchase a property and then rent it out for regular and consistent returns, or hold onto it and then sell it for great returns at the right time.
Best Cities For Real Estate Investments
While there are many considerations one must make while considering investing in real estate, its location has a major impact on its price and its potential to provide good returns. We have mentioned the top 3 places to scout for real estate investment opportunities below.
1. Fort Wayne in Indiana
A metropolitan area in the middle of the Midwest, Fort Wayne is home to nearly half a million residents. The average house in Fort Wayne will cost around $200,000, which is significantly lower than the average price of properties in the US. With its low cost of living, quiet neighborhoods and an almost 8 percent decrease in property prices, it is our top choice for investing in 2022.
2. City of Cleveland in Ohio
For anyone looking for a diverse urban area for settling down, Cleveland is the perfect choice. Cleveland is great for investors who prefer an urban lifestyle but at the same time would like to stay in touch with nature. The average price of property in Cleveland is approximately $120,000. Half the properties that are sold are often done at prices which are lower than the original price.
3. City of Toledo in Ohio
Toledo is the fourth-most populous city in Ohio. What makes it a prime location for real estate investors is that it was ranked as the 2nd best city to purchase a home. The average property price in Toledo is approximately $115,000. For real estate investors who are looking for a long term investment, the rate of home appreciation is around 13.50%, giving your investments the potential to grow quite well over time.
Finding Good Real Estate
There are many ways to find good real estate investment opportunities. Partnering with a real estate agent can help you get access to great options. Craigslist can also be a great place to look for properties. Sometimes, you might find great properties which are not on the market. If that happens to be the case, don’t worry! You can still make an offer to the owner of that property. With a good enough offer, you might be able to convince the owner to sell to you. If you have found an off-market property and need to find out who owns it, you can always do a title search on the property online.
There are many benefits of investing in real estate. With the right assets, you can get tax benefits, diversify your investment portfolio and enjoy a consistent cash flow. While it does consist of doing quite a bit of work, unlike stocks, it still provides significant returns and benefits and is quite a bit safer than other forms of investment.