Written By Charles Sells
Where are the smartest investors putting their money these days? Into Residential Housing, that’s where…and the southern United States is looking like the most attractive place to do it, according to some industry experts.
Investment Analyst and Editor of the business chronicle The Gloom, Boom & Doom Report, Marc Faber told CNBC this week that the Southern U.S. is a place where investors can buy homes for half the cost of what it would take to build them. Faber said some homes in markets like Atlanta were cheaper than homes in Thailand, where he lives, providing even small and medium sized investors with unprecedented opportunities. Increased housing supply coupled with the credit crunch making it harder for people to borrow money translates into a growing rental market in these areas. Folks who can’t borrow the money to buy these housing bargains, are having to become renters. Many experts say this is what helps to make these markets among the most attractive in the world for investors right now.
With the low cost of acquisition, savvy investors can realize up to a 20% rental yield in markets like Atlanta, hard hit in recent years by the housing bust. And experts say it’s not only the large scale and billion dollar companies who stand to make money with this model…the smaller, more flexible investors can cash in as well.