You don’t have to wait for a buyer’s market to find a good real estate investment chance. Even though you might have to pay more in a seller’s market, there are still ways to make money in areas where there is growth and demand. Start your search in Ohio here. The strong housing market in Ohio is something that smart buyers would do well to take note of. Since 2013, house values in the Buckeye State have been going up steadily. In the next year alone, they are expected to go up by nearly 5%.
Even in hot seller’s markets like Ohio, where homes often cost more, investors can still find ways to make money. Check out the top five places in Ohio to invest in real estate that are most likely to give you a good return on your money.
Columbus is the county seat of Ohio’s most populated county, Franklin County. There is also the well-known Ohio State University, which has more than 60,000 students who might be looking for student housing.
The area has been a seller’s market for a long time, since the typical house value has gone up 8.3% in the last year and is expected to go up another 6% in the coming year. Since 2014, rent has gone up by more than $200 a month.
Reports say that wages have kept up with the rise in housing costs, which is why many people are thinking about buying a home instead of renting. Homes don’t stay on the market for very long, which could mean that buyers will have to compete with more people. But the fact that the home market is likely to stay strong in the years to come is also very good news.
Although Baltimore is a relatively small city, there are significant prospects available for real estate investors that are interested in the market for multi-family housing there. Since 2013, the median value of a property has increased dramatically by almost $100,000, and it is anticipated that this value will continue to rise by another 7% within the next year.
The foreclosed property market is something that will be of special interest to bargain-hunting investors in the region. The rate of homes going into foreclosure in Baltimore is significantly higher than the national average (3.8 vs. 1.2, respectively). There are more than twice as many delinquent mortgages in Baltimore as there are in the rest of the country (1.1% compared to 2.6%), and 7.7% of homeowners in Baltimore are “underwater” on their mortgages, which means that the amount they owe on their mortgage is greater than the value of their home.
While this may not sound like a good thing for homeowners, it may allow investors who are looking to buy several rental properties or flip homes for a profit with an entry point into the market.
Although the market in Cleveland isn’t quite as hot as it is in other parts of Ohio, for investors, this may indicate that now is the ideal moment to make a transaction. Within the following year, home values are predicted to rise by 7.7% after rising an amazing 11.8% in the previous year.
The median property value in Cleveland is only $55,900, with a median selling price of $59,200. For investors, however, this is most significant. At $52,489, median household incomes are still below the national average. In addition, unemployment is greater than the national average at 6.4%, which combined with other factors may aid to reduce some local rivalry.
Although it has been sluggish, economic growth does occur. The city has been praised as one of the best places to stretch your budget despite its slow expansion. Numerous colleges are located there, which may provide a favorable rental market. The city is beginning to turn around its previously gloomy picture and start to reduce unemployment and encourage job creation, which will only help the local real estate market.
Madison is a peaceful town that welcomes families and has a lot of potential despite its smaller size in comparison to the other places on this list. With a typical rent of $1,113 per month, it has one of the highest average rental incomes in the state for properties that can accommodate multiple families.
The higher average monthly rent in conjunction with Madison’s lower housing values makes the city an ideal location for investors. Even though the market is beginning to slow down a little bit, analysts still anticipate a 4% increase in property values over the course of the following year. The median listing price for a home in Madison is $150,000, which is a bit higher than the average price for a home in the state but lower than the prices in Columbus and Baltimore.