When it comes to property investment, the first thing you should be doing is to look for the best locations to invest in. This year, most real estate investors have stayed away from cities with soaring prices, where it is far more likely to end up being a bag holder than rank in profits.
On the other hand, international properties stand out among investment options since they’re both a hard asset and one of the best current opportunities for generating cash while building real, long-term wealth. Whether you’re contemplating buying overseas or looking to expand domestic property holding, here is where you should concentrate your mind and capital in 2019:
Go rental over luxury
Despite all the positive talk about how well the U.S economy is doing, job gains are at the lowest rate in eight years. And while there was a boom in the tech sector, most new jobs are in the modest end of the pay scale, where inflation-adjusted earnings for the average employee weren’t increased in the last decade.
This will facilitate the high demand for rentals (apartments and single-family residences) but not at the high end of rents. The conclusion is that you shouldn’t invest in markets that are already over-priced. There won’t be so many leases for expensive real estate as time passes. Even in the markets listed here, you should focus on real estates where the rent doesn’t go beyond 25% of the average rent.
For three years in a row, Orlando remains to be in the top five places to invest in property. Owning real estate in this housing market remains to be a profitable decision. Why? Its beautiful scenery, ambient weather and continued improvement in the quality of life facilitates a dramatic population growth in Orlando, at the rate of 7.2%. Moreover, the city is slowly beginning to be a business hub for your professionals and saw annual job growth of about 4.5%.
Having an investment property in Orlando is profitable for real estate investors since Florida is one of the several states with zero personal income tax. Additionally, many experts state the Orlando housing market is the best location for beginner investors because of its affordability. Increasing rental income and affordability facilitate positive cash flow.
Indonesia is Southeast Asia’s biggest and most populous nation. Nevertheless, it has stayed off the radar of investors despite strong growth along with a large consumer market. Its economy is expanding at an impressive rate. Concentrating on manufacturing, infrastructure and services helped Indonesia average over 5% annual GPD growth since the beginning of the decade – one of the highest paces in this region.
Investment in Indonesia has increased both as a consequence and a cause of its resurgent growth. For those inexperienced with real estate investment in this nation, Invest Islands real estate company and similar enterprises can act as excellent intermediaries. Regarding renting properties, Indonesia’s high rents and the biggest rental yield should push investors to take a look.
Denver is ranked as one of the best places to invest both in traditional real estate and Airbnb aspect. In recent years, Airbnb rentals in Denver have become one of the most profitable domestic investment opportunities. For starters, Airbnb short-term rentals are legal since 2017. Airbnb is profitable in Denver because the city acquired over $3 million in taxes. Airbnb hosts also collect high rental income and return on investment from their rental real estate.
Denver’s populace is projected to be well above the country’s average in 2019. In addition, a big percentage of the city’s population is between the ages of 24 – 45, supporting the labor market growth.
When it comes to the Dominican Republic, it is advisable to concentrate on its capital, Santo Domingo. The country is enjoying continued strong growth rate, as well as increased foreign direct investment. Any business traveler coming to get in the nation’s economic boom passes through Santo Domingo.
They all need a place to sleep. A furnished rental for either business travelers or holiday-goers can be a profitable source of cash flow, and, if you purchase right, should enjoy nice capital appreciation. One of the best opportunities is to invest in is the pre-construction of an apartment intended for the business traveler market. Business individuals staying for several days often prefer an apartment over a hotel.
Although the interest rates are rising, investing in property – and especially in rental – will be a profitable move in 2019. But it’s a good time to neglect “sexy markets” and invest in long-term sustainability. Monitor your markets with care this year.