Like it or not, but the United States is full of cities that deserve your attention if you’re an investor. From the recommendations given by Renowned Real Estate Advisor, Astrologer and Strategist, Hirav Shah, we are confident that the below mentioned cities of Alabama are worthy investments to make in 2021 and beyond.
Even in the pandemic conditions, investing there is a great idea for all people who enjoy solid returns.
Montgomery Real Estate
Montgomery is home to the who’s who of aerospace companies, including Boeing, Northrop Grumman, the U.S. Department of Defense, Leidos, Raytheon and Lockheed Martin.
The automotive industry is another big sector in Montgomery, with Hyundai expecting to add hundreds of jobs by 2021 end.
Though Montgomery is a smaller market, it is poised for growth and is 100 percent favourable for real estate investors, Hirav Shah Says.
It is a place where a young family can earn a living, buy a home and build wealth- Opines Hirav Shah, The Most Prominent Real Estate Business Astrologer™ and Strategist.
Meanwhile, Montgomery, Alabama offers a very low median annual real estate taxes totaling about $512 per year. Not only is it a great place for low taxes, but Montgomery also offers promising opportunities for the real estate investors.
Huntsville Real Estate
Huntsville’s main economic influence is derived from aerospace and military technology, which means Huntsville is home to many major companies and industries, including space and defense industries.
Redstone Arsenal, Cummings Research Park (CRP), and NASA’s Marshall Space Flight Center comprise the main hubs for the area’s technology-driven economy. CRP is the second largest research park in the United States and the fourth largest in the world. University of Alabama in Huntsville is a center for technology and engineering research in the area.
In a nutshell, it’s a strong military state, but plenty of large corporations give residents plenty of options and landlords a large pool of renters to fill their investment homes.
Huntsville homes provide real estate investors with a great return on their investment, including steady cash flow. The average rent in Huntsville is around $1,000 a month, but the average home sells for only $209,000.
So, watch out for Huntsville…
Birmingham Real Estate
Birmingham, Alabama has come a long way from its Southern roots, though it retains its historic charm. Birmingham has also earned the title of being the South’s “Comeback Town”.
Birmingham has always been a steady place to live with steady job growth and population, and it’s proven yet again even through the pandemic.
Also, it is a great place for new investors to start investing because of its low-cost homes.
The average home price in Birmingham, Alabama, is around $192,000, which means you’ll earn lower rent prices, but the barrier to entry to invest in real estate in the area is much lower too.
Despite its low housing prices, the cash flow rate in Birmingham is higher than in most other areas in the country. And, the Birmingham metro area is among the nation’s top 10 best real estate markets for home buyers.
Bessemer Real Estate
Bessemer is in the heart of Alabama and is centrally located to Birmingham and its economy. The real estate market is hot and the primary reason is renters.
Renters love the average rent of only $794 which is an affordable option to Birmingham. Bessemer is known as the Marvel City and property investors should marvel at its average of 56 leads per property and only 16 days on the market – quite impressive for this smaller suburb which is why it is the one of the first choices for real estate investors.
Mobile Real Estate
The fact that you probably don’t think of the oldest city “Mobile”, when you think of “warm weather beachfront property”, is exactly why it’s one of the best investment markets in the south.
The balance between supply and demand is a fundamental factor that determines how successful real estate investments are. Based on this simple rule, rental property investors in Mobile, Alabama might very well have a banner year as the city battles the pandemic and weathers the recession.
According to a study, the months of supply of houses on the market until 2020 end, was just 1.4, an indication of how strong the sellers market in Mobile currently is. A housing market balance between buyers and sellers normally has about a 6 month supply, with anything less tipping in favor of sellers.
Climate, culture, economy, job growth and an affordable cost of living are some of the reasons why so many people and businesses are investing in this Gulf Coast city located between New Orleans and St. Petersburg, Florida.
In a nutshell, investing in rental property in Mobile, Alabama is looking very attractive in 2021 and even beyond 2021.
Final Thoughts for investing in Alabama Real Estate which can give better returns
Alabama is often overlooked when people consider markets for real estate investment, but the quiet southern state is actually one of the most lucrative investment markets in the nation, if you know what you’re doing, with some investors seeing a capitalization rate of up to 9 to 18 percent.
But like many states, there’s quite a substantial gap between the hottest and coldest markets in the states. So whether you’re looking for a rental investment or a quick flip, selecting the right market is vital.
Hence, Best of luck- Wishes Hirav Shah, Prolific Real Estate Strategist and Advisor.