With the 2008 recession firmly behind us and the U.S. economy in a period of sustained recovery (albeit painfully slow), Americans are beginning to find themselves in a position to begin investing again. The question then becomes, how to best invest in a world where the stock market is no longer the go-to option? Although the shine has worn off the iconic bull of Wall Street, standing perennially solid is the real estate market.
Real estate has served as a tried and true method of investment for as long as private property has been in practice. Long before Air BnB, homeowners offered their spare rooms, stables, and barns to travelers willing to hand over coin in return for a piece of property for a parcel of time. That being said, risk is inherent to investment, but the risk can be minimalized by the acquisition and application of knowledge regarding the investment.
The internet is full of information to be used by internet investors for better or for worse. Some of the information found online can be vital to an investment decision while other bits may absolutely poison the well. We have combed the internet, seeking out the most trusted sources to compile a list of cities across the globe primed for investment.
Now, let’s take a look at seven cities where investors can expect the most bang for their buck:
- London, U.K.
London is a great opportunity for investors who are looking expand their horizons for the first time. It is, obviously, an English speaking city but more so it is a cosmopolis, very accustomed to foreigners and welcoming of foreign investment. In January, Colliers Global released their Investor Outlook for 2016, which named London as one of the primary cities for cross-border investment.
- Berlin, Germany
Berlin is another European city which lends itself easily to foreign investment. Germany has a decades-long tradition of opening itself to immigrants and although the national language is German, most people speak English as well. Furthermore, Germany has long-held the reputation for being a strong economic power within the E.U. and has strengthened that position greatly in the last 2 years. According to Forbes, Berlin is only second to London for international real estate investment.
- Manchester, U.K.
Manchester is the third largest city in England, located in the north and about an hour’s drive from the western coast. Compared to other U.K. regions, Manchester is experiencing greater economic growth and stability. Property Investment U.K., a Manchester based property investment company, reports that, although the number of households are decreasing in the area, the size of each household is always decreasing, meaning that the demand for housing is on the rise.
- Chicago, IL
Two years ago, the Chinese began purchasing massive amounts of prime real estate in Chicago. The National Association of Realtors reported purchases which valued in excess of $20 billion in one year. There are two reasons behind this phenomena. The first is that the Chinese government places restrictions on how much property an individual can own, so when the Chinese want to invest, they have to look outside their own borders. Secondly, and more pertinently, the Chicago market offers very high returns on property investment.
- Miami, FL
The South Florida real estate market took an enormous hit during the financial and housing crises. Part of what contributed to this downturn was the over-speculation by unqualified investors into a great market. Those investors have since left, opening the market to new investment at lower entry price-point while still offering over 18% in returns year over year.
- Brisbane, Australia
IP Global listed Brisbane and Melbourne Australia as two cities which share traits that are attractive to investors and compare with cities like London and New York. Brisbane has enacted a comprehensive city-plan to improve the city, which is already great. Brisbane’s investment appeal is furthered by its position as trade port to the growing Southeast Asian market.
- Melbourne, Australia
Rounding out our list and with many similar benefits of, Melbourne comes in second to Brisbane primarily because the cost of entry and living is slightly higher, however the quality of life is proportionately higher as well. Melbourne is a bustling and growing metropolis which is poised to overtake Sydney as the largest city in Australia.
- Image courtesy thanks to Flickr and Jenny Downing.
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