While the housing market is looking good for a rebound this year, the market remains flooded with inventory. Houses with bargain basement prices are still slow to sell in some places, and abandoned foreclosures are suffering from self esteem problems and in need of good owners to love them. If you have a bit of capital you are looking to invest, now is the time to take advantage of record low mortgage rates. According to the National Association of Realtors, 19 percent of homes in 2011 were investment homes, up from 17 percent in 2010.
Think about buying an investment property that you can rent out for a few years until the economy brings prices and home values up again. Where, you ask? Try one of these states, where rental markets are booming and the average cost of a home hovers around $150,000.
- Nevada. You have better luck gambling on some rental property than on the roulette wheel in and around Las Vegas. Nevada was one of the states hardest hit by the foreclosure crisis and unemployment in Las Vegas is still over 12 percent. Many people who lost their homes are now renting, and you can get a place for cheap. Rent it to casino workers or entertainers who are still looking to obtain stable financial footing before they buy a place of their own. Search Nevada properties here.
- Florida. Another state that was overdeveloped during the housing boom is Florida. The Sunshine State has suffered, especially in places such as Orlando, Tampa Bay and Fort Lauderdale/Miami. People are scrambling to rent, and willing to pay an average of $1,000 per month for a home. You also have access to many retirees who are choosing to spend their golden years renting a home instead of buying. There is a diversity of investment properties to choose from. Single family residences, condos and high rise apartments in urban areas are available. Start your search and pick your favorite Florida city.
- Michigan. Did you see the Clint Eastwood Chrysler ad during the Super Bowl? I loved it. It was patriotic, hopeful and it worked…I wanted to go out and buy a minivan. The average price of a home in Detroit, if you can believe it, is under $100,000. The auto industry is rebounding, but home prices are not. If the unemployment rate, high crime and low school performance in Detroit scares you away from buying property, consider a community such as Warren. It’s more suburban, the houses are tidy and the neighborhoods are pretty. Rental prices are also on the rise, so check out available properties in Detroit.