10 States Where You Can Make Most Profit From Investing In Real Estate
Learn about 10 States Where You Can Make Most Profit From Investing In Real Estate by following this article.
Land and any development on land is a trickier asset than equities, stocks, or bonds. Tracts of land never go bankrupt and can always be resold. Like silver and gold, it is possible to make a profit in real estate if it is bought cheaply and sold later at an inflated price. For smart flippers, renovated property can be very lucrative.
The two principal ways to invest in property is to either rent out rooms or entire houses to tenants or to sell at a higher price after prices rise. It is also possible to invest in a real estate trust and let other people handle the house flipping. It is always nice not to have to get your hands dirty in order to make a property.
Some states have hotter real estate markets than others. A study by GoBankingRates lists 10 states that are most likely to make a big profit. It made its calculations based on statistics from Zillow. Taxes and the local power of a dollar were also taken into consideration.
An underrated state, Indiana is loaded with properties that are currently quite affordable. In facts, some towns have the cheapest property in the entire country, and other commodities are also cheap which means that local residents can afford to spend their money on improved housing. This could be the right state to improve older houses, especially with property value expected to appreciate.
This state has the country’s lowest cost of living, which means that everything from electricity to eggs and milk is cheapest here. Partly this has to do with a less active economy than the rest of the nation, but jobs and property values have a bright future. The three largest cities for real estate in Mississippi have an average price of $191,633 per house. The national average is $270,000.
Land prices are currently very affordable in Idaho and are also growing at an exciting pace. The value of houses in Boise has grown by 13.5 percent recently, and the rate goes as high as 15.6 percent for Coeur d’Alene. Homes are rising as are the rates for rents. The average rent rate is up $350 since two years ago.
This state is infamous for its lack of development, but that is changing. The good news is that people have money because everything is so cheap. A dollar in Alabama can buy 15 percent more than in other states. Since the bottom of Alabama is an extension of the Florida coastline, there is definitely some booming property down in the deep South.
Missouri is another sparsely populated state that is the fourth cheapest to live in according to Missouri’s own Economic Research and Information Center. The most active housing markets are St. Louis, Kansas City, and Springfield. The average metropolitan house price is just a little over 200k and the annual growth rate exceeds 8.1 percent.
This state is popular because it is warm and green but not too hot in summer. It also has three huge housing markets, the cities of Nashville, Memphis, and Knoxville. These markets are heating up, and homes are rising more than 9.1 percent per year.
This state has historically been underdeveloped and underpopulated. There are only 3 million people in this big state. The good news is that the local GDP grew by 8.3 percent in three years. A rising economy generally means new housing purchases near job centers.
This state is infamous for being in the rust belt, but it has kept its economic engine chugging by investing in diversity outside heavy industry. Even the largest cities in this state have affordable house prices, and a combination of factors have led to recent growth in property values.
This state has recovered from the loss of the auto sector by building new businesses. The local economy has improved and new jobs have resulted in new spending on housing. Grand Rapids is experiencing a growth spurt with some opportunities for smart house flippers.
Southern states can be good for business because of the lack of tight business laws. Georgia is another rural state that is experiencing a decent boom. Thanks to good education and low commodity prices, home values are currently on the rise. There is so much potential for new development in this state that land could be hot for years. Atlanta city has seen a huge spike in apartment prices.