The July/August issue of Personal Real Estate Investor Magazine featured Atlanta as one of their capital cities where property investments are a great buy since Atlanta is a high growth market.
Why is Atlanta a great market to buy investment properties? Well for starters, a quarter of the major fortune 500 companies are located in Atlanta and 75% of the major fortune 1000 companies. The Atlanta International Airport is one of the busiest airports in the whole world and the FBI says that the crime rate has dropped 40% in the last 10 years. There are tons of highly rated colleges and universities and the temperatures are fairly nice the majority of the year. RJ Palano, a buyer for BuyCashFlowProperties.com – a full-service investment company that only buys in the Atlanta Metropolitan area – says that “Atlanta has a lot of things going for it. One of the greatest attributes of Atlanta is that the employment sector is very diverse, from tech to health to transportation to personal services.”
Investing in properties in the Atlanta area 3 years ago was an exceptional opportunity since there were so many properties available. Now, there is a shortage of availability but building is on the rise. Investors are currently dominating the housing market and are snagging properties left and right from would be home owners: “…would-be owners are getting shut out as ‘build to rent’ is taking off and hedge funds and private investors are buying everything they can…Existing house values will continue to rise, as builders are building at new market rates for the pent-up demand by both would-be homeowners and investors,” stated RJ.
The employment rate has grown by 1.9% in Atlanta and the National average is only 1.5% and according the the Atlanta Journal-Constitution, this trend will continue. Atlanta is a high-growth market. Between 2000-2007, 1.1 million people moved to Atlanta and more and more are coming each day. Mr. Palano also explains that investing in a city primarily dominated by tourism when the economy faces a downturn is not a good investment: “when the economy goes down, people’s disposable income is impacted, thus they tend to travel less, which impacts cities that depend on tourism. I stay away from the Orlandos and Las Vegases of the world.” He also adds, “…each property I select for acquisition is located in a good neighborhood with good curb appeal and a functional floor plan. My top priorities are safety, growth, and cash flow – in that order…more people in the U.S. got wealthy by acquiring well located real estate and hanging on to it.”
Another factor that RJ considers is areas where property values are rising. “This is important for measuring investment returns. The aspect of future appreciation is something that we regard as more important than a higher cash-on-cash return based on just the rental income.”
The real estate market is hot in Atlanta right now and projections indicate that it’s only going to get better. RJ cocludes, “…it’s like being in real estate heaven…holding houses for long-term rental income allows you to make money while you sleep.”
In summary, Atlanta is a booming market filled with major corporations, relocation, a growing economy, great employment opportunities, and an awesome real estate market for investors. So why not find your perfect investment property now? You can download a free guide from Personal Real Estate Investor Magazine’s website about what you should consider when buying in Atlanta.
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