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East Randolph Street, Chicago

Why it’s worth investing in American real estate in 2013?

March 12th, 2013 · No Comments · Uncategorized

Though the year has barely started, 2013 is looking to be a very solid and prosperous year for the American real estate market. Interest rates on home loans are at a record low and, with other types of investment options still uncertain, many financial experts are eagerly pointing their clients toward acquiring real estate as a prime investment, and are actively encouraging them to purchase United States houses for sale.

Investing in U.S. properties

Positive investment trends are developing in many US metro real estate areas and getting a quick profit turn-around on an investment property is not only possible, it is highly likely. Considering the steady increase in prices for properties, this trend will undoubtedly continue for some time. One reason for this is the anticipated inflation that will occur in the coming year. As the prices for building goods and services increases on the commodities market, so do the prices of homes, both new and existing. The cost of maintaining properties will remain steady or decrease, resulting in an increase in overall income from the property.

There is also a steadily increasing demand for rental housing and a great deal of competition among prospective renters. This will stimulate rent prices and improve the income opportunity for the property investor.

When it comes to investing in American properties, there are many choices. Brand new constructions may be attractive to prospective buyers, but experienced investors may prefer less physically attractive properties such as multi-family properties or structures in need of repairs and renovations. The rate of bank foreclosures is still relatively high in many cities across the country, offering ample opportunity to get great deals on real estate. These distressed properties offer great returns, particularly for foreign property investors, with the added benefits of ease of management and a variety of strategies for ending the investment in a positive and profitable way.

For US-based investors, the real estate outlook is equally good, with the only real question being how they can position themselves to take advantage of the investment surge both quickly and safely.

Best US cities for real estate investors

The economic downturn has led many people to leave their homes and flats in and around the major metro areas for smaller towns with a lower cost of living. Large cities, such as New York, San Francisco, Atlanta and Washington D.C., continue to remain favorites among savvy real estate investors. Houston, Miami and other major urban areas are also emerging as excellent locations for picking up high quality properties at reasonable prices and many investors are taking advantage of the opportunity.

Many real estate investors are also beginning to take advantage of the lucrative market outside of these cities, venturing into the suburbs to find real estate with growth potential and excellent cap rates. San Diego offers plenty of investment opportunity for California investors who want to invest outside of San Francisco or Los Angeles. Worcester, MA is an excellent choice with small-town charm close to the Boston metropolitan area. In Florida, several locations are emerging as great investment locales, including Doral in the south, Lakeland in the center of the state and Jacksonville in the north.

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