The number of luxury home sales rose 41.6% in the first quarter of 2021. According to Redfin, “luxury” homes sell for an average of $975,000, while “expensive” homes sell for an average of $429,000. Low interest rates and record-low home prices are helping many Americans buy high-end houses. This strategy is also helping millennials avoid expensive cities like San Francisco and New York.
Despite high-end properties that are over the asking price are getting multiple offers, according to Redfin agent Katy Polvorosa.
As we see it, it seems like the right time to invest in U.S. real estate in Texas, Florida, and Colorado. Aside from the higher rental yields, these states can provide improved cash flow to investors.
“This is consistent with what we see in America Mortgages, especially with foreign nationals looking to buy investment properties, mainly in Texas and Florida.”Robert Chadwick
Texas Real Estate
Due to its diverse economy, Dallas real estate is very attractive for people of all income levels. Its low homeownership rate makes it the perfect place to invest. As interest rates rise, renting is becoming more affordable than buying. The demand for rental units has increased over 14% within the last year, making it perfect for investing in Dallas real estate.
Austin, Texas, is also another excellent place to invest in real estate. In the last 5 years, it has come to be known as another tech hub making its housing market very sizable. Its home values have more than doubled since 2010.
There are tons of high-paying tech jobs in Austin. As Austin is getting older, Millennials will become the largest buyers and renters in 2021, and this trend will continue. We believe investing in Austin real estate is a great market, as there is a huge scarcity of homes for sale in Austin, and more Millenials don’t see a value in owning.
Why should you invest in Texas properties?
The Texas real estate market has plenty of investment properties for sale. The real estate market in Dallas, Austin, and Houston is very active, and volumes of trade are high, and housing stock moves fast. This means it is relatively easy to exit investments and find a buyer for your home.
Florida Real Estate
In 2021, Florida is one of the best places to invest in real estate. This metropolitan area is also one of the most visited tourist attractions in the U.S. There are plenty of opportunities in this real estate market. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns.
Why invest in Florida Real Estate?
Florida’s real estate market is known to some as the hottest real estate market in the U.S. The housing market in Orlando, Tampa Bay, Lakeland, and Ocala is still growing steadily, with prices remaining low. Properties have a good chance of appreciation in the next couple of years. There is a huge demand for single-family homes in Florida, and with a strong renters market, we think this is a great place to invest in real estate and reap its yields and benefits.
Colorado Real Estate
Colorado Springs is a great place to invest in real estate in 2021. Its robust real estate market has continued to grow at a fast pace.
Colorado Springs’s real estate market is relatively affordable, with a median home price of around $320,000 and a monthly rent of approximately $1,600. Its proximity to Denver will make it more attractive to people looking to buy a home there. It is also important to note that the average home price in Denver in 2018 was $500,000. In short, you can buy two homes in Colorado Springs for the price of one in Denver.
Compared to other states, Colorado Springs has proven to be one of the best places to invest in rental real estate. What better time to do this than now when mortgage rates remain low?
At America Mortgages, we have eliminated many unnecessary steps to create a simple and easy process for our clients. We focus only on U.S. Expats and Foreign Nationals living overseas, and we offer over 150 U.S. bank and lender programs direct to our international clients. Our team of U.S. mortgage specialists are ready to help you! Schedule a call with us today!
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Sources: HousingWire & Redfin