Thinking of investing in rental property? There are a lot of things to consider, and one of them is where to buy the property.
Researchers at the Management Library looked at risks and rewards associated with investment property in all 50 states and found that property in some states will likely perform better than others. They not only looked at prices and rents, but also taxes, employment opportunities and quality of life.
South Carolina was the clear winner. It’s a beautiful, diverse state. It has mountains and the seashore.
There are charming – albeit expensive – cities like Charleston and no shortage of people who would like to live there. It’s one of the top destinations in the nation for retirees who are relocating.
It also has some of the lowest property taxes in the nation at 0.57%. The average home costs around $170,000.
The not so good places
On the other end of the scale is Louisiana. Its taxes aren’t that high and property isn’t that expensive, but rents tend to be low because of the widespread poverty in the state.
Louisiana also doesn't offer much in the way of job growth. It also scores low in healthcare and education, two factors that tend to attract middle-class tenants.
It also has one of the highest crime rates per capita in the country. Crime has increased significantly in recent years in the state’s largest city, New Orleans.
In spite of its natural beauty, Hawaii is only slightly better. Researchers say the main reason the islands are not a great place for rental property is the high cost of homes. The overall high cost of living leaves very little to pay rent.
The 10 best states
South Carolina
Idaho
North Carolina
Florida
Tennessee
Colorado
Arizona
California
Indiana
Texas
The 10 worst states
Illinois
South Dakota
New York
West Virginia
Michigan
Wisconsin
Mississippi
New Mexico
Hawaii
Louisiana
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-02-26 12:18:52
