Are you looking to invest in real estate but don’t know where to buy a profitable investment property? In this article, we’ll look at why North Carolina is generally a good place to invest in real estate and explore the best cities for real estate investment in NC in 2021. But before we get into that, is buying an investment property in 2021 a good idea? Read on to find out.
Should You Invest in Real Estate in 2021?
If you’ve been wondering ‘is real estate a good investment’, you shouldn’t anymore. Real estate is often considered the best place to invest money because it comes with several unique benefits. Unlike other asset classes such as stocks, it is regarded as a safer and more predictable investment.
Income property is generally considered the most valuable asset class. It is also more predictable than assets such as stocks. This is because the value of real estate won’t fall to zero overnight. For instance, following the 2008 crash, property values in some areas fell but later bounced back. People survived the crisis and held onto their properties and still maintained their wealth. Therefore, if your goal is to have regular income while alleviating the risk of losing all of your money, real estate is one of the best investments for 2021 that you should consider. However, you also need to know how to invest in real estate to be successful.
Before buying an investment property, there are several key aspects to consider. However, if you want to secure the best real estate investments, you need to do a thorough real estate market analysis to locate the best cities for real estate investment.
Why Should You Invest in North Carolina Real Estate?
Many people consider North Carolina to be a desirable location to invest in real estate because of its rural lifestyle, superb beaches, and excellent transportation links to major east coast towns.
The financial crisis brought by COVID-19, as well as the failures of Fannie Mae and Freddie Mac, had an impact on the North Carolina housing market, as they did across the country.
However, there are a number of structural factors that make North Carolina real estate innately appealing.
If you are looking for where to invest in 2021, here are some of the reasons why you should consider the North Carolina housing market:
1. High Occupancy Rate
North Carolina is home to the best cities for real estate investment because there are high occupancy rates across the state. The state’s occupancy rate is around 97%, which is about as high as it gets when tenant friction is taken into account.
This means a consistent source of income all year.
2. High Renter Population
A large segment of the state’s population is no longer interested in owning property and prefers to rent. For locals, renting is still more inexpensive than buying a home. This creates high demand for NC real estate rentals.
3. Low Mortgages Rates
North Carolina has had relatively low long-term interest rates, irrespective of Federal Reserve activity. Like the rest of the country, property investors in North Carolina are benefiting from historically low-interest rates in 2021. This makes North Carolina real estate a potentially lucrative long-term investment.
4. Growing Economy
The economy of this coastal state is broad and strong, supporting a wide range of industries including energy, finance, biotechnology, and information technology. Despite COVID-19, North Carolina’s economy and job market have been strong. This has resulted in an influx of renters as they search for jobs.
5. Affordable Entry Price
Houses in North Carolina have a relatively reasonable entry price. Investors can buy income properties at a fair price and profit from the high rental demand.
5 Best Cities for Real Estate Investment in North Carolina
The above factors make the North Carolina housing market one of the most appealing to investors in the entire country. While North Carolina as a whole is a wonderful place to invest in real estate, some areas within the state stand out as particularly good for real estate investment. Investment potential will differ from city to city.
Here is our list of the best cities for real estate investment in the North Carolina housing market. In addition to listing the best cities for real estate investment, we have included key real estate data derived from Mashvisor’s database.
1. Raleigh Real Estate Market
Median Property Price: $ 495,248
Price per Square Foot: $ 224
Price to Rent Ratio: 26
Traditional Rental Income: $ 1,575
Traditional Cash on Cash Return: 2.27
2. Durham Real Estate Markert
Median Property Price: $ 412,872
Price per Square Foot: $ 248
Price to Rent Ratio: 21
Traditional Rental Income: $ 1,605
Traditional Cash on Cash Return: 2.9
3. Charlotte Real Estate Market
Median Property Price: $ 499,199
Price per Square Foot: $ 250
Price to Rent Ratio: 24
Traditional Rental Income: $ 1,765
Traditional Cash on Cash Return: 2.16
Median Property Price: $ 484,188
Price per Square Foot: $ 209
Price to Rent Ratio: 29
Traditional Rental Income:$ 1,387
Traditional Cash on Cash Return: 2.14
Searching for North Carolina Houses for Sale
You now know some of the best cities for real estate investment in North Carolina. However, this is only your first step to finding a profitable rental property for sale. The process of finding a rental property for sale that meets your investment goals can be challenging for beginner investors. That’s where Mashvisor’s real estate investment tools come in handy. With Mashvisor’s tools, you can quickly and easily find and analyze investment properties for sale in North Carolina or anywhere else in the US housing market.
Mashvisor’s real estate heatmap will help you identify the top-performing neighborhoods in your market of choice in a matter of minutes. The tool uses different color codes to categorize neighborhoods based on average property price, rental income, cash on cash return, and Airbnb occupancy rate. With the Property Finder, you’ll be able to use different filters to find profitable North Carolina homes for sale that match your search criteria.
Last but not least, you will be able to get a full analysis of any income property on the platform through the Investment Property Calculator. It calculates key metrics such as rental income, cash flow, cash on cash return, cap rate, and Airbnb occupancy rate for both Airbnb and traditional rentals.
The Bottom Line
With affordable property prices, a high occupancy rate, and a growing economy, North Carolina is a great place to invest in real estate in 2021. Consider the above-listed best cities for real estate investment in NC and start searching for a profitable rental property for sale using our real estate investment tools.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.