Top 3 Reasons Why Atlanta Remains a Hotspot for Investors
Most of my investor clients today (present company included) are investing with the cycles of the real estate market. Over the past few years because housing was so cheap and rental is in such high demand you saw many more cash flow hungry investors. Of course cash flow is always king however as prices rise and cash flow reduces the vehicle to increase a total ROI is stronger equity growth (appreciation of the property). While no one can forecast the exact appreciation of a property or the growth of a real estate market, there are a number of common sense ideologies that can help you forecast the best possibilities of growth.
Top 3 reasons Atlanta is a great and sustainable real estate investment
When a market continues to attract businesses, each of these businesses employ people which of course creates more jobs. Atlanta’s economic expansion is a headline that hungry investors love to see as it validates growth and investment opportunities.
Population growth tends to go hand in hand with job growth. When a market creates jobs it has people moving to that market to fulfill the jobs. Some people move in as a job transfer to this new area. While others move in organically because of job availability. Either way these new people need housing and each of these employees need services which exponentially creates more jobs for the community. It is suggested that every person moving into an area creates additional jobs just to fulfill the growing needs of the population.
There is no better indicator that gives me a more warm and fuzzy feeling than investing in a market that is undervalued. Simply put the market that has the best long term ratio of housing cost compared to income (housing cost /income). Atlanta is considered to be the most undervalued market in the country by John Burns real estate consulting. The nation as a whole varies housing expense to income from 21% on the low end to a whopping 79.5% on the high end. While the markets across the country require an average of roughly 33% of your household income for housing expense, Atlanta only requires 21%. This is a full 12% below the national average.
Most Sustainable Investment
Now when you take a market that is growing in job growth with strong economics, then add in the population growth where new people need housing, then add to the equation a housing cost that is deemed to be the lowest in the country at 21% of household income, it is pretty easy to let common sense suggest this real estate market is a safe place to invest. The homes in the Atlanta market have potential to grow in value a considerable full 12% before even catching up to the national average.
To get a glimpse at what you can buy in Atlanta real estate surprises most people. I have had many investors from the California market buy investments in Atlanta that state their Atlanta investment properties are 3 times larger and much newer than their primary homes for about a third of the cost. If you are curious and would like to see some of these low cost properties just drop me an email, I would be happy to share them with you.
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