Investing in real estate property demands prudence, else hard-earned money will simply lead to losses instead of gaining profits. This year, before deciding on where to buy property, it is ideal to check out ten places regarded as the best locations where you can buy property in 2019. Take a look, and perhaps, the list could help you decide as to which location would be a good fit for you to invest your money.
Los Angeles, USA
In 2018, the real estate market in Los Angeles saw a significant rise. In fact, it has reached levels that were not expected before. This year, prices are predicted to continue an upward trend with a 7.7 percent climb. The city witnessed a steady rise in terms of apartments instead of family dwellings. It is considered as a fast growing area and there simply is a high demand for rental properties. Investing in Los Angeles real estate will certainly be an ideal choice this 2019.
The average rental yield for in Los Angeles is at 4.9% which is comparatively higher than other cities in California. Los Angeles implements 0%, 10% and 15% for long term capital gains and tax bracket between 10 to 37 percent depending on the income. The average rental price of a 2-bed flat in the city is at $2,782.
Hong Kong, Hong Kong
Despite being considered as an “overvalued” housing market and a bubble risk territory, Hong Kong still continues to stay strong in terms of its real estate market. In a report made by CNBC, the demand of buyers from mainland China to obtain a permanent residency status could greatly support the real estate market of the country in 2019. It could even pave the way to drive up prices. With this considered, issues on volatility will not be a sufficient deterrent in terms of real estate investments in the country.
The average rental yield in Hong Kong is at 2.35%. One thing that makes this country very attractive to investors is that they do not have capital gains tax. This would surely sound like music to the ears of those who want to gain most out of their property. The average rental for a 2-bed flat in Hong Kong is at HKD110,000.
London, United Kingdom
House prices in London have seen a drop in 2018, however, financial analysts from the Bank of England made a stand that this drop will not lead to a national trend. Falling prices have primarily circulated in inner London, thanks to the Help to Buy scheme implemented in outer areas. This scheme allowed owners to buy even a newly-built property. Still, many are optimistic that falling prices is a temporary setback and that prices of real estate in London will soon stabilize, just like the way it has hurdled such downturns for decades.
One simply couldn’t bring down
a behemoth. London real estate is still at its best with an average rental
yield of 9.79%. Its average capital gains has reached £90,000 and the average
price of a 2-bed flat is at £1,700.
New York, USA
With a diverse culture and with such a huge expanse, the real estate market in New York continues to be as varied as ever. In some areas like Queens, a good real estate market is expected as the area gives buyers “affordability.” Manhattan has a higher rent growth though as more and more residents opt to experience better living conditions and communities. For 2019, analysts have predicted that real estate investors who want to buy investment properties in New York will enjoy the upper hand.
While the average rental yield may vary, those in Manhattan enjoy 3.5%. The average capital gains in New York will be dependent on a number of factors. The usual bracket of 0 to 15 percent is used in computing gains. As to the rental, a 2-bed flat apartment in Manhattan carries an average rent of $5,474.
Shanghai may be an ideal destination if you are looking for a property to buy this 2019. During the first week of this year, the housing market in Shanghai has already shown double-digit growth. In fact, the sale of new residential properties has increased by 12.5 percent. The average cost of a brand new home has also risen by 5.8 percent. For this year, Shanghai may be a good stop for property investors.
The average rental yield is growing between 5 to 7 percent. The average capital gains is at 20 percent and a 2-bed flat for rent in Shanghai is at CNY 1,500.
Boston is considered as one of the top cities that would be ideal for real estate investments in 2019. Here, investments are considered safe and investors can expect high rates of return. Some factors that make Boston an ideal place to purchase property include good employment growth, high percentage of younger workers, as well as the fact that a high percentage of the population is between the ages 25 to 44.
The average rental yield in the city center of Boston is at 5.03% while outside the center is at 8.25%. As to capital gains, short-term capital gains is at 12% while long-term capital gains is at 5.2%. The 2-bed flat rent in Boston averages at $3,383.
Taking things with a grain of salt, the slowdown in the housing market in Chicago may be for the benefit of investors wanting to capitalize on it. Tax burdens may be high but the dynamics involved in real estate may just turn things around. Median home prices are expected to rise and this is something to watch out for this 2019.
The average rental yield in Chicago is 7 to 8 percent, which is significantly higher than others. The average capital gains, like other US cities, is at 0 to 15 percent. The rent for a 2-bed flat in Chicago is at $2,382.
Property prices still keep on creeping up and while many Chinese young professionals are finding it hard to reach their goal of owning properties in Beijing there is still a huge potential for moneyed investors. The government itself recognizes the difficulty of purchasing real estate, which is why they made rentals more lucrative. With a huge population available, investing in Beijing real estate can be viable.
The average rental yield in Beijing is between 2.8 to 2.9 percent. The average capital gains is at 20% and the rent for a 2-bed flat is at RMB10,000.
It would seem that Houston’s real estate market is as robust as ever. Millennial generation is taking center stage as they’re the ones mainly moving the market towards a certain direction. Many are opting for luxury condos. The influence of friends and peers into getting people to opt for a certain living space drives real estate sales constantly growing. Thus, investors could grab the chance of this current trend in Houston.
In terms of average rental yield, Houston stands out at 11%. As to its average capital gains, it still is at 10 to 15% depending on the amount. One can rent a 2-bed flat in Houston at an average price of $1,205.
While it cannot be denied that the Sydney real estate market has suffered some decline, there is still some optimism that it will not last into perpetuity. Some factors that arrest these include strong GCP growth, wages growth, strong population, as well as low employment. With these considered, it won’t be long for Sydney to get back on its feet.
The average rental yield in Sydney is 2.52%. The average capital gains, according to the National Australia Bank Limited, is the same as the rate for the income tax paid for that year. If you want to rent a 2-bed flat in Sydney, prepare to pay an average monthly rate of AUD 2,000.
Buying a property in 2019 will always be a step in the right direction. You just have to choose the most ideal location to invest your money and consider all attendant factors in the area before you make that one giant leap.