There are television shows about it. You might have a family member who does it. In fact, you may even own a few pieces of real estate yourself. When it comes to investing in property, some areas are just better than others. According to a recent article from Entrepreneur, Denver comes in second on the list of the best places to get rich with real estate.
Data is abundant these days thanks to the internet, and a few groups have crunched the numbers to discover the absolute best places to invest if you want to get rich with real estate. They looked at the 50 most populous areas in the United States and determined the top 10 best places to invest. The index measures many different factors related to making money from property, including gross rent and appreciation, among others.
The Top Three
- Dallas – Dallas has some of the strongest appreciation values in the country and the rents were very high compared to those overall values. In fact, according to the data, people in Dallas were slated to earn a 20% return before expenses.
- Denver – Denver comes in second on the list due once again to strong home appreciation values. In fact, while Denver came in second, its appreciation values were the highest out of all 50 markets studied. Real estate prices increased 13.4% per year on average in the Denver Metro area, and some places in suburban Denver experienced even more price growth.
- Miami – Three Florida markets made the top 10 list, and Miami is the first. Investors in Miami properties enjoy an average 18.6% return year over year, making it an excellent place to own property.
Why These Areas?
Oftentimes, the metro areas that have the highest annual returns for real estate investments are also those that are growing the fastest economically. These places add more high-paying jobs than other cities across the country, which causes people to gravitate toward them. As such, the demand for housing skyrockets, which drives up not only asking prices from sellers, but also average rents. This means that the people fortunate enough to own multiple homes in these metro areas can make a small fortune in just a few years’ time.
Is the Time Right for You to Invest?
If you’ve considered investing trying to get rich with real estate but you’re wondering if the time is right, buying properties in these cities is by far your best bet. With the housing market so favorable and metro areas like these still growing – and quite rapidly, at that – owning homes that you can rent or simply use to diversify your investments is always a good idea. Other cities that topped the list were Houston, Atlanta, Tampa, Detroit (which is beginning to reestablish its volatile economy), Austin, and Orlando.
It comes as no real surprise that Denver took the second spot. Those who live there know that things are growing and the economy is booming. If you’re interested in getting rich with real estate, then think about buying a couple of properties while appreciation rates are still high.