The July 2009 issue of Forbes magazine examines the rental market for several U.S. cities. Their conclusion is that returns are now better for landlords than those from investing in stocks. With many stock portfolios, 401K's and IRA accounts declining by over 35% in the last ten years, many people are re-evaluating where to put their money. While more hands-on than stock investing, returns from rental real estate are now much greater than from the stock market. Indeed, the Forbes article points out that the cap rate (annual rent minus expenses divided by sales price) on residential rental property is much greater than the current yield in the stock market of 2.4%. The average cap rate for Atlanta, GA is 8.7%, placing it at number 7 in Forbes list of top 10 cities with the best returns for landlords.
The return on investment, coupled with an abundance of deals resulting from foreclosures, makes now an absolutely fantastic time to buy investment properties. Furthermore, recent price declines are allowing investors to pick up properties at a fraction of their selling prices from a few years ago. Call us at 678-524-0833 or click the "Fixer Upper & Rehab Deals" link to the right for a Free list of bargain properties and start increasing your returns today!
