Real estate is an important part of any balanced investment portfolio. However, investing in real estate can be daunting, as it traditionally requires a large amount of money upfront, as well as excellent credit, and ongoing upkeep. Additionally, when investing in real estate, you need to pick the right area. After all, when it comes to real estate, you can modify almost everything, except for the location. If you’re looking to invest in real estate, but don’t know where to buy, we’ve assembled a list of some of the best places to invest in real estate in 2023 and beyond.
Why Should I Invest in Real Estate?
Investing in real estate is important for several reasons. The first of which is that real estate provides diversification and stability. As we’ve seen throughout the past year or so, the returns of stocks and bonds can be largely influenced by macroeconomic trends. Whereas with rental real estate, you’re much more protected from macroeconomic shifts, so you typically don’t see much volatility in rental rates. Rental rates may experience short periods of decline or stagnation, but generally speaking, they tend to trend up over time steadily.
Why is It Important to Start Investing in Real Estate Now?
So long as you’re investing in quality properties in great areas, the timing of your purchase doesn’t matter nearly as much as how long you own a piece of real estate. Owning real estate is one of the best ways to build wealth over time. This is why it’s incredibly important for Gen Z’ers and Millennials to begin investing in real estate sooner rather than later!
Should I Invest in Real Estate in My Town?
This is a question that nearly every real estate investor asks themselves. While you may know your area incredibly well, it may not be the best area to invest in. After all, the United States is a very large country, and there are countless great cities just ripe for investment. While investing in your own town might be easier for you, chances are you can attain better returns investing outside of your town, and potentially outside of your state!
How to Choose an Area to Invest in Real Estate
Generally speaking, when you’re looking to make a real estate investment, the best areas to invest in are ones that are experiencing sustainable population growth, with a strong outlook.
These areas typically have plenty of high-paying jobs in a multitude of industries, great schools, and low vacancy and tenant default rates. Great areas will typically also have very large, growing companies with established roots. After all, people have a tendency to flock to areas where jobs are plentiful and high-paying, so it’s important to research an area’s labor market before making an investment.
Where Should I Invest in Real Estate?
Although Atlanta has benefited in a massive way from the post-pandemic real estate boom, many would still consider it ripe for investment. Overall, Atlanta has a very business-friendly climate, which has driven large companies, like Delta Airlines, Google, and Chik-Fil-A to establish roots in the area. Not to mention, Atlanta is also home to one of the busiest airports in the world, making it a huge hub for tourism, both domestically and internationally.
Huntsville is the largest city in Alabama, in terms of both area and population. Much like Atlanta, Huntsville has seen a huge appreciation in home values recently, however, homes remain relatively affordable. Although Huntsville’s employer pool is not incredibly diverse, companies like Boeing and Lockheed Martin have established incredibly deep roots in the area. The aerospace industry offers a wide variety of high-paying engineering and technology jobs, which makes Huntsville a great place to invest in.
Nashville is yet another booming city in the Sun Belt. Although many know it as the country music capital of the world, this city has much more to offer! Aside from the rich culture in Nashville, there are some very large employers as well, such as Asurion, Randstad, and Nissan North America. There are also some large universities in the area, like Vanderbilt University, Belmont University, and Tennessee State University. Given the fact that most students are renters, the large student population in Nashville is a huge driver for rental demand.
Over the past couple of years, people have been flocking to Texas, and Dallas has been a huge beneficiary of this migration. The combination of no state income tax, great weather, and tremendous job growth rates make Dallas a very attractive area. There is also a wide variety of employers in the Dallas-Fort Worth area, with some of the largest being American Airlines, Lockheed Martin, Texas Instruments, Southwest Airlines, and Verizon Communications.
Don’t Want to Invest Directly in Real Estate?
As we all know, purchasing a property, renting it out, and maintaining it can require a lot of time and money. Not to mention, rental properties can be quite the headache at times too! If you want to invest in real estate without having to put up large sums of money or deal with the headaches of managing a property, Fintor can help.
Fintor allows investors to invest in shares of real estate for as little as $500, called fractional investing. Gone are the days when you had to go through the process of finding, purchasing, and closing on a property to invest in real estate. With Fintor, you can buy shares of property in as little as 4 minutes.