Prior to globalization, people invested in real estate in their own localities but as the world has become more globalized and connected, real estate investors have access to nearly the entire world for investment.
The 27 Best Places to Invest in Property are the following.
- Sydney, Australia
- Melbourne, Australia
- Brisbane, Australia
- Boise, Idaho
- Dallas, Texas
- Atlanta, Georgia
- Las Vegas, Nevada
- Orlando, Florida
- Spokane, Washington
- Canberra
- Tampa, Florida
- Austin, Texas
- Gold Coast
- Chicago, Illinois
- Columbus, Ohio
- Lakeland, Florida
- Ocala, Florida
- Birmingham, Alabama
- Durham, North Carolina
- Charlotte, North Carolina
- Colorado Springs, Colorado
- Denver, Colorado
- Raleigh, North Carolina
- Phoenix, Arizona
- Settle, Washington
- Johannesburg, South Africa
- Auckland, New Zealand
Key indicators that are attractive for property investors include the following.
- Level of economic activity
- Legal framework
- Government regulations
- Social and Political environment
- Strength of its Capital market
- Level of Real Estate investment opportunities
Some of the common traits of the best places to invest in are low-interest rates, the effect of supply and demand, return on investment for a rental property and strong economic growth
Australia with a 10.5% per annum is a great rate of return. In the United States a good Return on investment for a rental property is usually above 10%, but 5% to 10%. New Zealand’s economy is successful in the manufacturing and agricultural sectors, the booming tourism industry and a strong renewable energy resource base.
1. Sydney, Australia
Sydney, Australia is one of the best places to invest in property, due to the high Gross domestic product per capita of $52,158 for 2020. The country has sustained a healthy yearly average of a 5% increase in real estate value from the year 2004 to 2021. The country’s strong legal and political institutions also ensure that the market is stable and predictable
The median price of a house in Melbourne, Australia is $1 168,806. The property value has improved in Sydney, Australia. House prices have increased 4,95% and units prices 0.98% across the property market.
2. Melbourne, Australia
Melbourne, Australia is one of the best places to invest in property due to low-interest rates, mortgage repayment holiday options during the peak of COVID-19 and the extension of the JobKeeper program by the Federal Government.
Last year Melbourne house prices and market activity were adversely affected by its extended lockdowns but now Melbourne property is on the move again with dwelling price growth for the year to date of 13.1%
The median price of a house in Melbourne, Australia is $918,350. Domain Property Reports indicated house prices have lifted by 5.3% while unit prices have grown by 4.4% in spite of current circumstances.
3. Brisbane, Australia
Brisbane has overtaken Sydney and Melbourne to become the city of inter-state migration. Reasons are due to its lifestyle, sun-kissed outdoors and affordable properties.
The median price of a house in Brisbane was $616,387 which was at a record high, according to the Domain House Price Report. By then, there was a 5.6% rise in house prices.
4. Boise, Idaho
Boise, Idaho is special for property investors because of its low mortgage interest rates. The median price of a house in Boise. Idaho could go for as low as $1200. The median existing-home price in Ada County has risen 118% in the last 5 years! If you had purchased just 5 years ago, a median-priced home would have added over $200 000 to your net worth since then, prices are still rising.
5. Dallas, Texas
Dallas Texas -Fort Worth Arlington is special for property investors because Metroplex is the No. 1 visitor and leisure destination in Texas. The median sales price of a single-family home in Dallas is $302,000 according to the most recent report from the MetroTex Association of Realtors (May 2021).
6. Atlanta, Georgia
Atlanta, Georgia is special for property investors because it is one of the fastest-growing big cities in the U.S. Atlanta promises job opportunities and offers salaries that have been increasing more rapidly than the national average.
7. Las Vegas, Nevada
Investing in Las Vegas properties is a great option as Las Vegas has very low investment property taxes and no personal income tax. The state’s average effective property tax rate is just 0.69%, which is well below the national average of 1.08%
The median sales price of homes remained the same $405,000, which is still up 20.9% from the prior year.
8. Orlando, Florida
Orlando, Florida is one of the most popular tourist destinations in the US. Being home to Disney World, Sea World, and Universal Studios, Orlando, Florida has the country’s largest universities, a diverse population, cultural vibrancy, a focus on arts and a thriving sports sector.
The median listing home price in Orlando is $305,000 based on the most recent report from Realtor.com (May 2021). Growth in the Orlando area last year reached 15% with rents also seeing significant growth
9. Spokane, Washington
Spokane, Washington is special for property investors as it is known for being the gateway to the American West, with low-interest rates.
The median home price in Spokane County increased to $389,728 in August 2021, up from $317,000 in August 2020, according to data from the Spokane Association of Realtors. However, home sales were down 1.7% from a year ago.
10. Canberra
Canberra is offering investors a stable, consistent, and reliable return
According to the latest Domain House Price Report for the December quarter of 2020, Canberra’s property prices reached a record high with the median house price up 9.1 percent year-on-year to $855,530 and unit price up 1.3 percent year-on-year to $485,410.
11. Tampa, Florida
Tampa, Florida has low mortgage interest rates helping first-time buyers as far as housing affordability is concerned. Low inventory and low-interest rates are helping sellers to move their properties quickly.
The Median Sale Price has increased by 21.4% to $338,000.
12. Austin, Texas
Austin, Texas has investment potential if planning to live in Austin for more than 3 years then buying a house is better than renting. It has some of the lowest housing prices, too and an increase in demand.
Austin’s median home value is around $348,800.
13. Gold Coast
Gold Coast property investment is special due to the surge in property value, low-interest rates, economic development, opportunities to raise a family, and the spike in domestic tourism.
The median price for a house on the Gold Coast will rise 6 percent, exceeding $650,000 in the near future, the highest in three years.
14. Chicago, Illinois
Chicago, Illinois is an excellent choice for real estate investors. Due to the low cost of living, high affordability and relatively large housing inventory levels. Chicago has a large no. of renters. Therefore, buying investment properties in Chicago, and renting them out is an excellent choice for real estate investors
According to Zillow, the median Chicago real estate price has risen from about $155,000 in 2012 up to $229,000 as of January 2021 for a 47% increase.
15. Columbus, Ohio
Columbus, Ohio’s mortgage interest rates range from 2.0-4.5% and real estate tax is lower than many states, with positive price increases and sales continuing to rise, Columbus, Ohio is a good property investment.
The median listing price of a single-family home in Columbus is $225,000 based on the most recent report from Realtor.com (May 2021).
16. Lakeland, Florida
The Lakeland, Florida real estate market has affordable real estate for buyers and future growth, the population of the area to growing rapidly, and the renting population is even faster. Good reasons for property investors to invest in real estate.
In Lakeland, Florida the median sales price for homes in Lakeland was $178,000 on average. Lakeland, Florida real estate market trends indicate an increase of $9,900 (6%) in median home sales and a 4% rise in median rent per month over the past year
17. Ocala, Florida
Ocala, Florida is a very strong area for rental investment. Great job growth supported by increases in distribution centres.
In Ocala, Florida the median home price is in the range of $248,700 and a median rent of $1,289, downtown Ocala.
18. Birmingham, Alabama
There has been a steady increase in Birmingham home values at 10% in the past year. The forecast for the next 12 months is that prices will increase by 55 to 6%. Property investors will invest in Birmingham due to Low property taxes and the most affordable city for first-time homebuyers – Lending Tree
Birmingham market trends indicate an increase of $12,000 (7%) in median home sales over the past year. The average price per square foot for this same period rose to $115, up from $112.
19. Durham, North Carolina
With strong population growth and a solid economy, the rental demand in Durham, North Carolina is continuously increasing. North Carolina House Price Index is up 5.47% over last year
Durham home prices were up 19.6% compared to last year, selling for a median price of $353K.
20. Charlotte, North Carolina
Charlotte, North Carolina has a strong job market, with many large corporations and top destinations for rental real estate investors. It is predicted the real estate market will have a combined growth rate of 19.0%
The median home value in Charlotte, NC is currently at $252,500 on Zillow. With a median listing price of $292,000 and the median price for sold homes at $261,900.
21. Colorado Springs, Colorado
There is a high demand but low inventory in the Colorado Springs real estate market. Housing prices in Colorado Springs are still increasing because of this effect of supply and demand. Colorado Springs’s home values have gone up 28.3% over the past year.
The median price for listed homes in Colorado Springs is $427,896. This value is seasonally adjusted and only includes the middle price tier of homes.
22. Denver, Colorado
Denver housing market. NeighborhoodScout reports that around 50% of the population lives in a Denver rental property as opposed to owning a home. Denver, Colorado has a strong, diverse economy needed to boost the housing market and keep demand high for local long-term rental properties.
The median price for listed homes in Denver, Colorado is $499,198
23. Raleigh, North Carolina
Raleigh has a strong return on investment, the Raleigh real estate market has an economic future that ensures long-term growth in housing demand and rents and contains large populations of renters.
The median list price of homes in Raleigh, NC was $360K, trending up 15.4% year-over-year. The median listing price per square foot was $182. The median sale price was $380K, according to Realtor.com’s July 2021
24. Phoenix, Arizona
Rent and median sales prices have been increasing in Phoenix year after year and experts expect Phoenix median home prices to increase by more than 25% over the next few years. Job markets and the economy show continued growth.
The current median price of Phoenix, Arizona is at $345,000 ($15,000 higher than the country’s median)
25. Settle, Washington
The real estate market is recovering and returning to a healthy state, according to Mashvisor. As The Seattle Times notes, the real estate market is driven by development and redevelopment opportunities, investor demand, projected net migration, job density, and an overall strong economy.
In August 2021, the median asking price for a home in Seattle was approximately $755,000, up 2.8 percent year over year. At $800K, the median sale price was even higher.
26. Johannesburg, South Africa
South Africa’s interest rates are low therefore a good time to be buying an investment property, sitting at around 1.5% nationally according to PayProp. Despite the Southern African nation’s current economic and political distress, real estate remains an attractive opportunity for investors.
House prices have been relatively stable in South Africa, with homeownership levels at around 60% of the population. The average national price for an entry-level home (80–140 sqm) is around ZAR 937,000, with an average medium-size house currently costing around ZAR 1,255,000
27. Auckland, New Zealand
New Zealand has an average annual real estate growth rate that stands at 5.8%. The country is an advanced economy with very strong social, legal, political and financial institutions to encourage market stability.
Auckland, New Zealand has an average house price of NZ$ 1,040,000 (US$ 739,603)
Tips for buying an investment property in 27 of the Best Places to Invest in Property are listed below.
- Be clear on your goals.
- Do your research.
- Set a budget within your means.
- Check your credit history.
- Set your timeframe.
- Decide who’ll manage the property.
- Consider whether you need insurance.
- Budget for the little things.
What should you know before deciding on the property investment area?
Here you can see the things you should know before deciding on the property investment area.
- Property Location: The mid-to-long-term view regarding how the area is expected to develop over the investment period should be considered when deciding on Property location
- Investment Purpose and Investment Horizon: Positive cash flow is key to a good rate of return on an investment property.
- Your Credit Score: If you have a higher credit score, you may get better terms. Your credit score affects your ability to qualify for a mortgage, and it impacts the terms your lender offers.
How to Find the Best Area to Invest in Property?
Below are some tips on finding the best area for Property Investment.
Pick the Right Market: Finding the right market is the first step as it is very important in order to find profitable opportunities. With that being said, you have to look for a market that is strong with the following:
- Market growth: You need to research in order to know if a specific area’s population will either increase or decrease in the future. It is better if an area has a large population wherein people are moving in and not moving out.
- Job market: Everyone needs a job for a living and therefore, each and every person would consider moving into an area that has a lot of good employment opportunities. It is also your duty to know if a specific area has had steady and stable growth when it comes to jobs.
- Home values: You have to consider that your investment should increase in value at the right time. You have to ensure that every single thing you have to pay is worth it.
- Rental Rates: You have to set the desired return and in order to reach that goal, you have to make sure that the region of your chosen location has rental rates that result in a worthwhile and good investment.
- Pick the Right Neighbourhood: You have to inspect the neighbourhood thoroughly since it will also have a big impact on your tenants’ decisions when choosing a rental property as well as on their daily lives.
- Income levels: This is essential to know and consider for a reason that neighbourhoods with high income typically own homes that are at high prices.
- Schools nearby: Each and every parent would want their child to have quality education and as a result, they move into an area where education and school are quality and strong. Neighborhoods that have desires with school districts often submit high rental rates.
- Nearby Amenities: Anyone would love to stay in an area where amenities are very easy to access such as malls, parks, medical facilities, restaurants, grocery stores and a lot more. Tenants would love the thought of everything being available in one area.
- Transportation: There will be a lot of potential tenants when the property is located near public transportation as they will find it very convenient for them, especially when going to run errands, go to work or even at school.
- Pick the Right Property: When you are now deciding on everything, the final step will be picking the right property. In order to do that, you have to analyze the following:
- Inspections: It is important to do an inspection of the property before buying or investing as it will tell you whether the property is in good condition or not.
- Appraisals: There will be an appraiser who will evaluate the property and report to you the results wherein it will give you an idea with regards to the home’s fair market value in which you can differentiate it from the price list.
- Cost of Acquisition: You should also be knowledgeable when it comes to simple and basic math in order for you to know the home’s purchase price through a mortgage if ever you are planning to finance it.
- Ongoing Costs: There might also be ongoing costs which include insurance, maintenance, leasing fees, and monthly mortgage payments. management fees as well as property taxes. All these are important to know and list down for you to be able to know whether the property will have a positive cash flow if compared and differentiated to the generated monthly rental income.
The following terms are important in terms of finding the best area to invest in.
1. Population Trends
When the Population grows at a faster rate than the supply of new properties on the market, this makes current housing more valuable, so prices increase.
2. Economy
This is generally measured by the Gross domestic product, manufacturing activity, employment data, the prices of goods, etc. When markets are down so is real estate.
3. Salary & Income Trends
The house price-to-income ratio in Australia was 108.6 percent as of the first quarter of 2021. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, increased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area
4. Price to Rent Ratio
The price-to-rent ratio is the ratio of home prices to annualized rent in a given location. This ratio is used as a benchmark for estimating whether it’s cheaper to rent or own property.