With the Fed meeting looming on September 17-18, hopeful homebuyers are eagerly awaiting a rate cut that will make mortgages more affordable. But where should you buy a property before 2025 to get the best return on investment (ROI)?
Warning: According to real estate agents, the 7 worst states for buying real estate in the next 5 years are
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Real estate investors who keep an eye on the market, like Doug Greene, owner of Signature Properties, a home buying company in Philadelphia, have extensive experience on this topic.
“If I could do it all over again and do it my way, Pennsylvania wouldn’t even be an option!” said Greene. “There are many places in the United States that are much more attractive and remarkable than my home market of Philadelphia.”
GOBankingRates tapped the expertise of Greene and two other real estate experts to find out which states are best for buying property before 2025.
North Carolina
Greene says North Carolina is still a great place to buy a home or invest. “People continue to flock to this state because it’s accessible, it’s growing and the prices are reasonable.”
“(Thousands of the properties) I buy in Pennsylvania, I buy because people have decided to move to North Carolina, and since Covid, this state has been a desirable location because of the outdoor activities and attractive weather prospects.”
North Carolina is fantastic for investors because it is a landlord-friendly state and offers a relatively low tax burden for residents and investors alike. What Greene likes about North Carolina as an investment location is its growing micro-cities and economies that continue to attract large technology companies and business firms.
“Hubs are being established in and around Raleigh, Charlotte and Durham, and the coast is easily accessible and travel-friendly for long weekend trips most of the year.”
Discover more: The 20 best cities to buy a house for under $100,000
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Montana
The final frontier offers scenic beauty and outdoor opportunities in the state of Montana. “It’s a great state to buy a vacation home, Airbnb as an income opportunity, or even as a primary residence if you tend to a slower pace of life,” Greene said.
Greene said you’ll be impressed by the variety of hiking, fishing, biking, boating and rafting opportunities the state of Montana offers. “You have access to some of the most pristine and best-preserved natural parks.”
Because of the low taxes, buying a home in Montana is a great choice because you get a lot for your money. “Depending on the exact property and location, you can expect to get a lot more bang for your buck in Montana than in some other major cities in the U.S.,” Greene said.
Read more: The 6 best Florida suburbs to buy property in the next 5 years, according to real estate agents
Texas
Two real estate experts agree that Texas is one of the best states to buy real estate this year.
“Real estate prices across the state are rising as many people continue to move here from across the country, especially from the east and west coasts,” said real estate agent Arthur Greenstein of Douglas Elliman.
“Texas is also home to a large number of Fortune 500 companies, and major companies continue to locate here,” he added.
According to Greenstein, “Texas is attractive to many because of its business-friendly climate, thriving job market and the fact that there is no state income tax.”
“The real estate market is booming and I don’t expect that boom to end anytime soon. That makes it a smart place for real estate investments,” Greenstein said.
Is everything really better in Texas?
Mark Severino, real estate investor at Best Texas House Buyers, LLC and Dallas landlord, shares reasons why he believes Texas is the best state to buy a home before 2025.
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Population growth and infrastructure development: “Construction is constantly going on, and roads and highways are being built to improve traffic flow, which benefits Texans. Older buildings are being torn down and replaced with new construction.”
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Financial possibilities: “Texas is home to several corporate headquarters, and Elon Musk just announced he’s moving SpaceX’s headquarters to Texas.”
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Positive outlook on the housing market: “Interest rates remain high, but so do housing prices. It’s highly unlikely that prices in Texas will ever really crash because the economic fundamentals for housing are strong.”
“Therefore, buying a home in Texas this year is a safe investment for the future, as it will most likely be worth more tomorrow than it is today.”
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This article originally appeared on GOBankingRates.com: 3 Best States to Buy Homes Before 2025
