Real estate has historically been one of the safest ways to invest your money. Even in recent years, with the global recession and instability of the U.S. housing market, buying rental property has remained the gold standard for investors looking to diversify their assets and achieve a stable flow of income. With the recent rebound of the housing market and current low interest rates, real estate investment has now reached a fever pitch – and Kansas City is one of the best locales for investing. Here’s why:
The local economy in Kansas City is growing, which is always good news for investors. The population is expanding, GDP is up, and the job market is booming. Positive factors like these translate into real profits for local property investors, who are in a position to meet the needs of new people coming to the area or even existing residents moving into other parts of the city.
KC is also known for having some of the most affordable homes in the nation. The Midwest in general offers more square footage for less cost, but Kansas City in particular has an advantage – investors can get this same great deal of more bang for their buck, with the added benefit of being in a large population base with lots of potential tenants for their properties.
Affordable prices aren’t the only positive factor, either. KC’s real estate inventory is solid and stable with just over 2,200 homes for sale currently in Kansas City proper. When you factor in the listings in the surrounding suburbs, that equates to even more potential properties for investors. Obviously, not all of these listed homes are suitable for investment purposes, but with a large and diverse inventory like this, there is great opportunity for investors looking to turn a profit in real estate.
Home appreciation rates in Kansas City are currently sitting between 7% and 8% – some of the highest in the U.S. Compared to other housing markets in the state, Kansas City’s appreciation rates come in higher than 90% of those cities. This is great for investors, who can purchase properties for minimal cost and resell at a later date for a higher price, resulting in a positive gain on their investment.
Finally, there are also a number of neighborhoods in the Kansas City metro that are experiencing a resurgence. Not only is this good for the city, it’s good for investors, as people are making the effort to revitalize segments of the city that have suffered in the past. When neighborhoods rebound, positive impacts are seen all around as surrounding property values increase. In KC, there are a number of neighborhoods that are currently on the rebound, providing ample opportunity for investors to time their purchases right, swoop in, and score a great deal while home prices are still low.