The Most Expensive Cities For Real Estate Investment In The US. How does Victoria compare?
As natives of Victoria, we take great pride in our city and our home territory. And whilst house prices here have spiraled and, in some eyes, reached exorbitant heights, there are cities across North America which simply dwarf our own market. Keep reading to see how we stack up to the likes of New York, Boston and San Francisco.
In the real estate game, location is renowned for being perhaps the most important single factor in determining the value of your investments. Some local markets are worth significantly more than others, and like-for-like properties can cost radically different amounts depending on their geography. There are a number of reasons for this effect, but generally some areas will always experience more demand than others. From an investment point of view, choosing the right real estate markets to invest in can determine, in part, the success of your investment.
The most expensive cities in the US have average rental rates extending into the thousands, and this can make it difficult to investors to get a foothold in these markets. Investment companies like Fortress Credit Corporation and Pete Briger, San Francisco choose to invest in these areas. But which are the most expensive cities in the country, and how do they compare?
The world-famous Big Apple, New York real estate comes at a significant premium. Home to Wall Street and big business, New York is one of the world’s most fashionable cities, where the business and cultural elite mix with a diverse populace to create a distinctly flavored culture. The average rental rate of a two bedroom apartment in New York comes in at a touch over $3,550 per month, more than double the national average. This underlines the desirability of new property. Aside from the residential real estate market, commercial real estate ventures in New York also have scope for success. But only those with the deepest of pockets can consider this a viable option.
If you are looking to make money renting one bedroom apartments, look no further than Boston. The city has the most expensive average rental rate for small apartments in the entire country, despite being comparatively much smaller than the other expensive cities. The average one bedroom rental rate is $2,965 per month, while two bedrooms come for an average of just $3,505. While wages in and around the city are naturally higher to meet the increased cost of living, it is nevertheless a good place to find properties for investment purposes. While demand is perpetually strong, finding opportunities in older properties that can be renovated, for example, can help improve your chances of a profit.
Of all the expensive cities to live and invest in, none come close to San Francisco. At just shy of $4,000 a month for a two bedroom apartment, real estate prices for investors and residents alike are sky-high. The market in San Francisco has been described as "dog eat dog," with robust demand ensuring quick turnaround times on marketing properties.
Each of these cities represents a massive urban center. These places are popular because of the employment and cultural opportunities they offer, which pushes up the price of property. In the geographically limited central areas, this factor is felt in a way that is even more profound. As an investor, this usually means city real estate is a good bet for investment. But with expensive property costs in the first place, investors need to be careful to make the right choices.
So, in summary, there are cities all across the US that illustrate what could be described as Victoria's bargain prices! But, when discussing location, we believe it all comes down to suitability. NY, for instance, may be a mecca for the fast life but at Slow Vic HQ we have something to say for taking things at a bit more of a measured pace!
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