Charlotte, North Carolina has a lot to offer against other cities in the United States. Thanks to the city’s solid trend of increasing population, job availability, and increasing development of residential and commercial properties, people from different parts of the country have decided to move there. But it’s not only residents who have chosen to move to the city, even investors, more specifically, real estate investors.
Wonder why? Here are some reasons:
The national mortgage crisis has affected greatly the housing situation in Charlotte, which is actually good for investors. The increasing number of foreclosures has created discount opportunities for Charlotte real estate investors.
The construction of new homes within the city has lessened by 30 to 40 percent because of the slowing home sales. Eventually, builders will have to get rid of these properties. Investors can then take advantage of the opportunity and purchase these houses for a lower price and sell them at a higher rate.
Charlotte has a large number of tenants who are interested in rental homes. This is because of the poor lending practices and over borrowing from people, causing foreclosures. Eventually, these foreclosure victims have to wait before they can apply for a new mortgage. Sometimes, others won’t be able to meet the lending requirements, which are stricter because of their credit history. They should choose to rent a house in the mean time. Therefore, if you invest in Charlotte real estate, then you’ll gain a lot from rental payments of your tenants.
In fact, there have been big investment groups buying up Charlotte homes last July just to turn them into rentals. These firms spent approximately $80 million buying more than 600 single-family homes. Most of these investors buy houses and pay as much as $100,000 to $200,000 in cash.
The rising population, which is attributed to the increasing number of people relocating to Charlotte, has caused a rise in the demand for rentals. Some of these individuals have to rent a house first while they try to sell their home from their former city. Because of this, rent have increased by 10 to 15 percent, which makes Charlotte real estate investment opportunities better than ever.
Are you now considering investing in Charlotte real estate? For more insight on investing and relocating to Charlotte, listen to our radio show, How’s the Market: Real Estate. Real Answers, this Saturday from 5-6 PM on 1110 WBT. Wes Pruitt from Reliance First Capital will be on to share is opinions and advise on the matter.