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Orlando and Tampa Best Places to Buy Investment Property in the US

Orlando and Tampa Best Places to Buy Investment Property in the US

A report released at the end of September reveals the best places to buy investment property in the US. Tampa and Orlando, two of the most popular places to buy property in Florida, come out top, ticking all the boxes. Not only are the two cities registering high employment and population growth, property prices in both are booming.

 

The survey carried out by GoBankingRates, a financial and interest rate comparison portal, looked at 61 of the most populated metro areas to find out which are the best to buy investment property in the US. Using four criteria – employment growth, population increases, home price rises and the number of years of rent required to pay off a purchase, GoBankingRates produced a national ranking.

 

The report points out that prices for property in many metro areas are rising and in some, they are approaching (or have even surpassed) levels last registered before the economic crisis. GoBankingRates emphasises that wage increases have failed to keep up with these price hikes, a situation the company describes as “bad news for homebuyers and good news for investors”.

 

Orlando Top of Best Investment Property in the US

Florida ranks as one of the best states to buy investment property in the US with 4 metro areas ranking in the top 15. At the top of the nationwide ranking is Orlando, where the report says “property owners will find much to like”.

 

This popular Florida holiday destination and employment hotspot ranks highest in the country for both employment and population growth. Between July 2015 and July 2016, Orlando’s population soared by 4.5 per cent while job creation went up by nearly 3 per cent.

 

When it comes to property in Orlando, the market is, according to GoBankingRates, “hot”. July this year registered the 60th consecutive month of price rises. In the year to June, house prices went up by 17.44 per cent, the seventh highest in the country. Based on median rents and house prices, it would take just over 12 years to pay off a property in Orlando. The combination of these four factors makes it the best place for buy-to-let property in the US.

 

Tampa Ranks Second for Best Buy-to-let Property

Hot on the heels of Orlando is Tampa, the second best location for investment property in the US. Like its fellow Florida hotspot, Tampa has registered high employment and population increases over the last year. Specifically, the population rose by 2.51 per cent in the year to July and jobs by 3.5 per cent.

 

GoBankingRates points out that despite house price hikes – Tampa property values rose by 21.28 per cent in the year to June, the fourth highest in the country – median home values are below the national average. When these are compared with median rental rates in Tampa (US$1,400), it would take 9.66 years to pay off the purchase of a single family home in Tampa, one of the lowest in the country.

 

Other Florida Property Investment Hotspots

Although Orlando and Tampa dominate the top of the rankings, Florida metro areas also have a good showing further down the list. In tenth position is Miami whose high ranking for best investment property in the US is due to the city’s massive growth in population. According to GoBankingRates, the number of inhabitants rose by almost 10 per cent between 2010 and 2015.

Slightly lower in the rankings is Jacksonville, a metro ranking in 13th place. Exceptional employment growth in the city is the main reason behind the position – the 3.6 per cent increase in the year to June is one of the highest in the country.

 

Highest Price Rises for US Property

In a separate survey carried out in August GoBankingRates looked at property price rises in 100 metropolitan areas. Yet again, Florida dominates the rankings and takes 4 out of the top 20 positions.

 

In first place is St Petersburg, located on Tampa Bay. According to the survey, prices rose by a massive 37.52 per cent in the 12 months to June this year resulting in “a housing market that’s blazing”. GoBankingRates highlights the fact that demand for property in this area of Florida is pushing prices over their asking price.

 

Other Florida metro areas featuring on the highest property prices rises were Tampa in 4th place (up 21.28 per cent), Orlando in 7th (up 17.44 per cent) and Miami in 18th place.

 

“The two surveys clearly pinpoint Florida as the best place to buy investment property in the US,” said Dies Poppeliers, Managing Director of BRIC Group. “In particular, Orlando and Tampa tick all the boxes on the buy-to-let checklist. And with demand for rentals showing no sign of abating, we fully expect these metro areas to continue to perform well.”

 

BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.

 

(Source: GoBankingRates)

 

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