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ST. LOUIS, MO/August 7, 2017 (STLRealEstate.News) HomeUnion, an online real estate investment management firm, released a report this week for usatoday.com in which they ranked the top 20 zip codes in the United States with the biggest return on real estate at this time. Naturally, St. Louis found its way onto the list, which was configured by identifying zip codes that maximize real estate returns while minimizing risk over a five-year horizon. The firm went onto examine school quality and neighborhood attractiveness for single-family rentals over the five-year period.
“HomeUnion Research Services looked at more than a dozen attributes that characterize a neighborhood including crime, schools, white-collar jobs, unemployment, home-ownership, permitting activity, and more,” said Steve Hovland, director of Research for HomeUnion. “Based on those attributes, we forecast appreciation, vacancy, and rent changes over the next five-years.”
The study also calculated Annualized Total Return, which includes HomeUnion’s projections for how much the value of single-family rentals will appreciate and how much cash flow they’re expected to generate in the future. HomeUnion’s model, according to Hovland, can determine the price and rent for every single-family home within a specific zip code while enabling them to predict the price and rent in five-years.
Americans are known for investing in real estate for flipping a profit over a certain time period. Therefore, knowing a zip code and its predicted appreciation rate is a critical tool for those looking to invest in 2017 and 2018. To mitigate the risks, investors should focus assets that can maintain value even during downturns.
Number 20 on the list kicks off with North Indianapolis, Indianapolis with annualized total returns at 5.4%. Next comes North Hollywood, California with a 5.4% annualized return as well. Jumping up to number 17, Maryland Heights, St. Louis clinches the spot with 5.5% returns. Number one is Hamptons at Boca Raton, Florida.”
Thanks to stlrealestate.news for the information!