Are you wondering where you can invest in real estate in the US? That fact is, when it comes to real estate investment, there is no one-size-fits-all approach. What’s right for you might not be suitable for the next investor. Where you invest depends to a greater extent on your personal preferences and investment objectives.
However, there are certain everyday things that many investors look out for. These include affordability, population growth, job growth, taxes, to mention a few. Whether you are a novel or a hardcore real estate investor, you need to consider the top five cities for your next investment venture.
Located in the eastern part of Arizona, Scottsdale is famous for its golf courses and lavish spas. It is one of the best cities in Arizona for real estate investors. There are many reasons for this. The economy of Scottsdale is growing and robust.
That’s why there are many Scottsdale homes for sale. Its fast growth is attributed to the fact that there’s an average annual increase of about 3.2% in employment opportunities. The high influx of well-paying jobs and companies is also attributable to its business-friendly policies, especially on taxation matters. In 2017, WalletHub ranked Scottsdale among the best cities in the US for employment opportunities.
Most industries in Scottsdale are doing well, including tourism, hospitality, technology, and healthcare. Another advantage of investing in Scottsdale is that there’s an acute shortage in housing inventory, which causes a steady rise in house values. Not to mention the lower cost of living when compared to California and New York. Scottsdale boasts higher living standards. That’s why if you look at most of the Scottsdale homes for sale, they are found in high-end areas.
The city has a vibrant downtown area, convenient access to Spring Training facilities, high-end shopping, and other tourist attractions. To crown it all, there’s a high demand for traditional investment properties in Scottsdale. For example, many people consider Scottdale as the best city to retire in the US.
The best decision you can ever make is to invest in Lexington’s real estate market. Even though it may seem like all investors are looking into real estate, this city still holds a lot of hopes for those who want to try it.
Why should you look at Lexington? There are many reasons to do this. For a start, the rates here are low and rental units are in great demand. Most people in Lexington prefer rental to homeownership. So, you need to identify the neighborhood where you can get tenants, and you’ll be good to go. Another advantage of Lexington is that its economy is doing so well. Meaning many people here do not have any problem paying rent.
The latest census puts Boise’s population at 234,576. Being the capital city of Idaho, this is expected. It is the 97th largest city in the US, with an annual population growth rate of 1.25%. Since 2010, its population has increased by 14.04%.
Boise has all that it takes to be the best place for real estate investment. Apart from the low taxes, many investors here are eyeing the student market. It is the biggest student market in Idaho because it is home to Boise State University, Idaho State University, and the University of Idaho plus all their satellite campuses. Also found here is the Boise Bible College.
Another factor fueling the Boise real estate market is that job opportunities are available here. In Boise, job opportunities and population grow at a rate that’s three times that of the national average. This explains why many people are moving to Boise, and all of them are looking for residential properties.
Boise provides an excellent quality of life and is one of the best cities in recreational opportunities. Its location will put you within reach of the local wilderness. Its climate is also conducive, making it comfortable for skiing, rafting, biking, golfing, hunting, kayaking, and even rock climbing.
Many people associate Austin, Texas, with live music, but that’s not all that Austin is about. News is spreading about how this city is lively and is ripe for real estate investment. Many commercial and residential investors have discovered that Austin is among the hottest markets for real estate investors in the US.
What with its continuous expansion courtesy of its population growth, high-class schools, availability of jobs, affordability of housing, industry influx, and tax benefits. Many tech companies are found in Austin, including PayPal, Amazon, and Apple. The big industries that fuel this city’s growth include the pharmaceutical, biotechnology, and technology sectors.
Austin has a population of about 985,000 people, and it is estimated that the city receives at least 100 new residents daily. Austin’s property prices keep rising, and experts expect that Austin’s real estate market will do better than the national average in just a few years to come. This is because many companies, including Tesla, are expected to move to Austin, and the existing ones are also expected to expand.
Florida is known for its vacation destinations, theme parks, and picturesque beaches. It is also a cultural melting pot supported by a robust economy. These are justa few of the reasons real estate investment in Sebring is a good bet.
Sebring’s economy is growing, which is the most critical factor that should drive you to invest here. Florida is one of the states that perform well economically in the US. With a GDP growth rate of about 4%, it is ranked four in the US.
Besides, Sebring is also a tax-friendly city, which makes it suitable for all kinds of businesses. Florida is among the seven states where personal income tax is not levied, meaning entrepreneurs and investors can substantially reduce their tax burden.
The unemployment rate in Sebring is meager, courtesy of its growing economy. According to the Bureau of Labor Statistics, Florida data, the unemployment rate here stands at only 3%, which is below the country’s average. The growth of its economy is also attributed to its population growth rate, ranked 2nd in the whole country.
The cities discussed above are the best when it comes to real estate investment in the US. Depending on where you are or where you intend to invest, choosing any of them to guarantee you some return on your investment. The fact that they are showing positive population and economic growth means they are the most suitable cities for real estate investment. Whichever city you choose, ensure that the neighborhood you invest has access to health, education, transport, and recreation facilities. This will increase your chances of getting tenants.
Top 5 Reasons Why Banks Reject Loan Applications & How You Can Avoid Them When Reapplying
Top 5 Reasons Why Banks Reject Loan Applications & How You Can Avoid Them When Reapplying
Personal loans are a source of emergency funding for many people. But loan seekers must remember that applications for personal loans may get rejected. There are many reasons for loan rejection, and it is good to know them before applying. A personal loan rejection does not necessarily mean that you are not creditworthy. Understand the reason why you were refused credit loans, and you can easily avoid loan rejection when reapplying.
Here are the most common five reasons for loan rejection –
Poor Credit History
Individuals who borrow and repay loans on time have high credit scores based on their history of repayment. If you have never borrowed before or have defaulted on a loan in the past, this will reflect in your credit score and may get you a loan rejection.
Lenders analyze your income records to determine whether or not you will be able to afford the monthly installments. If the bank or the lender cannot verify your income with the information you have given or if they think that your income is insufficient – it may lead to a loan rejection.
Debt to Income Ratio
A high debt to income ratio means that you are already spending a large part of your income in paying off your current debts. This is important, as it helps lenders determine whether you can take on another loan payment or not. People with low debt to income ratio are never refused credit loans.
Living in a Location Where Defaults are High
It may surprise you to know that banks and lenders mark geographical locations where defaulters live. If your address reflects a location where many defaulters live, you could face a personal loan rejection.
What Should You Do Before Reapplying?
In case your loan application gets rejected, don’t worry. For refused credit loans, lenders are obligated to send a notice of adverse action informing the applicant about the reasons for denial of the loan. Here are a few simple steps you should take before reapplying.
- Take a Look at Your Credit Reports: Obtain your credit reports online for analyzing your credit history and score. Reviewing your credit reports will help you identify the problems such as late payment or defaults that led to your loan rejection.
- Evaluate Your Debt-to-Income Ratio: Taking a look at your current debts vis-à-vis your income will help you understand if you have sufficient income to repay the loan you had applied for. Creditors usually look for a debt-to-income ratio lower than 36% for good creditworthiness.
- Discuss the Loan Rejection with Your Lender: After analyzing your credit reports the best thing to do is to talk to your lender. They will guide you about the right reason why your loan application was rejected and how long you need to wait before reapplying.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at email@example.com.