The real estate market is the best investment for the money, or so say Americans polled this year by Bankrate.com. Despite the drop in the real estate market nearly a decade ago, a majority of investors are siding with real estate as the best place to make an investment move when considering stocking away monies for 10 years or more.
2015 was the first year that real estate took the number one spot on the list for best investments since Bankrate.com started surveying investors three years ago. In years past, cash topped the list as a favorite of investors.
This year, investors named cash as their second most favored investment, followed by the stock market.
Real Estate as an Investment
Using real estate as an investment is on its way back. The real estate market is shaking off its reputation from the last decade and moving back into the driving seat for many investors. The reason real estate investment continues to entice capitalists is because it does have a good return on investment for the wise financier.
An investment in real estate investment, like Orlando luxury homes, is simply making a purchase of a property with the expectation of future income coming from the property. It may involve the purchase, ownership, management, rental and/or sale of real estate for profit, and in some parts of the country, the profit can pay off very well.
If considering real estate as an investment, you should follow these general guidelines:
1) Strive to earn a fair cash-on-cash rate of return
2) Pick a property that isn’t too risky and take a fee simple title
3) Find properties, like Orlando luxury homes, that don’t require a lot of time or management
To zero in on the best areas in the country for real estate investment, get some guidelines from BiggerPockets which just released its Real Estate Investment Market Index that lists the hottest markets it believes investors can get the most out of their real estate investment.
Based on home purchase prices, appreciation, and rental prices, see the 10 best cities followed by the 10 riskiest cities for real estate investment in 2015.
Best Cities for Real Estate Investment Along with Percentage of Return
- Dallas: 19.5% return.
- Denver: 18.9% return.
- Miami: 18.6% return.
- Houston: 18.5% return.
- Atlanta: 16.5% return.
- Tampa: 16.4% return.
- Detroit: 16.2% return.
- Austin, Texas: 15.6% return.
- Las Vegas: 15.3% return.
- Orlando: 14.9% return.
Riskiest Cities for Real Estate Investment Along with Percentage of Return
- Hartford, Conn.: 4.4% return.
- Salt Lake City: 5.4% return.
- Louisville, Ky.: 5.7% return.
- Milwaukee: 5.9% return.
- Washington, D.C.: 6.4% return.
- Los Angeles: 6.5% return.
- Baltimore: 6.7% return.
- New York: 7.1% return.
- Boston: 7.4% return.
- Birmingham, Alabama: 7.7% return.
Buying real estate as an investment can be lucrative, but it’s also cash-intensive and carries risks.
Putting down the money necessary for closing costs, taxes, and general maintenance and upkeep are just part of the reason real estate is cash intensive. The risks involve fluctuations in the real estate market as well as the fallout that can come from serving as a landlord.
But, optimally, real estate continues to be a worthy investment; hence this year’s results placing it at the top of the list.
