When we think about investing money, usually the idea is to start up a new business venture or to invest in an existing one. While it’s much harder to engage in the former, the latter can be easily done thanks to the stock exchange, a platform which allows to you invest in equity shares with a click of a button in the comfort of your own home.
However, investing in real estate has become the new profitable venture, as returns in the real estate market are said to be substantial. Indeed, while there was a time when people would only invest in real estate when they needed to buy a house for themselves, now people are buying houses only to benefit from their rising value over the years.
How You Can Invest in Real Estate
Unlike the equities market where there are only a couple of ways that you can benefit from the movement of stock prices, the real estate market offers you multiple ways to invest. The first way is to purchase a property and then rent it out to tenants. This method offers both an increase in the value of your property over time and also ongoing return in the form of rent.
If you don’t want to make that big of an investment for whatever reason, then a REIT (Real Estate Investment Trust) is also a great option to take advantage of the returns being offered by the real estate sector. REITs work in a simple manner: they take your money, pool it with money received from other investors, and then purchase properties, eventually giving you returns based upon the increase in value of the same.
The Most Lucrative States
Of course, we will never recommend that you purchase property in a state like New York, as the already saturated state offers the least return on property valuation. Instead, it’s the states that are usually ignored where you will be able to reap the most per dollar return, as property rates are experiencing the most hike over there.
These states are lucrative because although the prices associated with properties are quite reasonable even now, the value of these homes has exceeded the price. This means that eventually, over the next few months or a couple of years, prices of these homes are going to increase and match their perceived value.
According to reported figures, Indiana ranks at the top of the list of the most desirable states to make an investment in real estate for multiple reasons, such as low prices of properties on average, an impressive purchasing power of the local community, and also the speed with which homes are appreciating in value. Also, the state ranks sufficiently high in affordability as far as cost of living is concerned.
Second on the list is Mississippi, and this place has the lowest living cost in all of the US, which means that your dollars are worth more there than anywhere else in the country. The markets which you should be eyeing are Jackson, Hattiesburg, and also Gulfport, where you should be able to purchase property at the average price of around $191,633. This is far below the national median price which stands at $275,000.
Idaho ranks third on the list which not only offers affordability but also the value of homes in this state has been increasing at a vigorous rate on a year-on-year basis. The areas of interest are Boise and Idaho Falls, although Coeur d’Alene also holds a lot of potential.
Another major plus point which should convince you to invest in the real estate sector here is the fact that rental rates are consistently on the rise in these localities. For example, in the area of Boise rents have risen to around $1400 per month as per the figures reported in September 2018, which is much higher than the figure of $1150 reported two years ago around the same time.