If you are thinking of buying Birmingham Investment Properties in 2020, you might be wondering whether it is a right decision or not. Well, for a start let us know a little bit about this beautiful city of Birmingham. It is in no doubt the most populous city in the state of Alabama. There are several factors that have led to the truth of this statement. It is 330 square kilometers of land and 5.2 square kilometers of water.
The city was first founded in the year 1871 AD. Since then, the city of Birmingham, Al has seen an upward trend in terms of its population growth. One of the factors that have led to this increase is its rich nature of mountainous ridges and good share of physical scenery.
Since its year of discovery, the city has been an educational central of state of Alabama and has been the favorite destination of many educational aspirants who come here to seek the careers of their choice. 100's of schools have been set up in the city of Birmingham and several top notch universities. The city's ever growing population shows a need for real estate investments and developments for the good of the new growing population.
Birmingham is home to world-class medical research, a celebrated food and arts scene, and the Birmingham Civil Rights National Monument. It has been voted one of the nation’s most livable cities with a thriving community and more green space per capita than any other city in the nation. There has been a steady increase in Birmingham home values at 10% in the past year. The forecast for next 12 months is that it will be a hot seller's real estate market and the prices will increase by 55 to 6%.
Therefore, buying Birmingham investment properties is considered to be a wise decision by experienced real estate investors who know the market very well. The Birmingham AL real estate market continues to take steps in the right direction in 2020. Lets us discuss the major economic developments and 12 great reasons to go for Birmingham real estate investing in 2020.
Why Should You Invest in Birmingham Rental Properties?
Economic Developments In Birmingham, Alabama
In the census of the 2010, the city of Birmingham, AL had registered two 212,237 members of the public. Vast development projects with some great come backs have been made in the city with buildings such as Wells Fargo Tower being acknowledged as the tallest building in the state on Alabama until 2007 when the RSA Battle House Tower was built.
100-year-old insurance agency, Fisher Brown Bottrell Insurance, has opened its first Alabama office in Birmingham. According to the Mayor of Birmingham, the city is experiencing a unique surge in energy around enhancing the city’s innovative capacity, primarily centered on the “Innovate Birmingham” initiative. He announced that Birmingham Innovation will construct a 100-gigabyte network to bring more internet accessibility to the city.
The Mayor William Bell said the city has seen growth in the neighborhoods beyond the building permits. Community Safe Rooms are being built in in Smithfield Estates, North and Central Pratt and Sandusky at a total cost of $3.4 million. The building permits throughout the city’s neighborhoods are up 11.6 percent, and downtown is experiencing a building boom of more than $1 billion. The total valuation of construction is up by 50.7 percent.
There are proposed developments at the CrossPlex Village and Ensley Public Safety Complex and additions to the revitalization in Woodlawn, Avondale and East Lake. The metro region has seen an increase of over 14,400 jobs under Mayor's administration with major contributors like Kamtek, LabCorp and Oxford Pharmaceuticals.
Great profits have been reaped by real estate investors who bought Birmingham investment properties in the past, and I am sure that many more investors from across the US would come in with time to exploit the vast real estate market of Birmingham.
The development forecast for the coming years seems promising with some great prospects. If I was an investor, would I be in luck investing in Birmingham investment properties? Well how about we discuss the city's developmental progression and get the answer.
Birmingham, AL would be a great place for real estate investment with an overall Niche grade of B-. This puts the city of Birmingham ahead of many other cities in the US.
12 More Reasons To Invest In Birmingham Properties In 2020
- For one, the city harnesses diversity having different people living together in harmony and unity. Crime rates are minimal in the area meaning security over time is evidently improving.
- An interesting fact about Birmingham is that the rent percentage of housing is higher than the buying rate. What this means is that the rate at which natives buy houses is lower than the renting rate with a difference of 6%.
- Buying rate is at 47% while renting rate is at 53%. This would be a good figure for anyone interested in investing in the area especially in building rentals and accommodation rooms.
- Another interesting fact about the city is that it is ranked 36 among the 228 cities with lowest cost of living in America. The reason for the fast invasion of new inhabitants is now clear.
- The Real estate cost in this city is ranging from $50,000 to one $100,000 for the buyers and ranges from $500 to $1000 for renting. This is one of the most affordable deals in the real estate market.
- With the city being rated as a suburban city, it is moving in the right direction. There are great public schools in the city of Birmingham enhancing quality learning for students.
- An investor who would come in to exploit the needy real estate market here would make great profits and also help out the residents when it comes to raising living standards.
- Not only jobs but also housing facilities are required to cater for students. New real estate developments need to be made to house the learned percentage of the masses undertaking studies in the different Universities in Birmingham, and this shows the truth of the statement that it is an educational center for Alabama.
- As per Trulia, Birmingham market trends indicate an increase of $12,000 (7%) in median home sales over the past year. The average price per square foot for this same period rose to $115, up from $112.
- Birmingham housing market remains among the most affordable markets in the nation, which looks good for homeowners, investors and renters alike.
- Birmingham is a steady real estate market where investors can purchase Birmingham investment properties for $80,000 to $100,000. This make it a prominent place for new investors to get their feet wet and for anyone searching for a good investment that can create stable monthly rental income.
- Birmingham was ranked #1 in America's Most Affordable Cities by Forbes.
Where To Buy Investment Property in Birmingham, AL?
There are 105 neighborhoods in Birmingham, AL. Greystone has a median listing price of $617,000, making it the most expensive neighborhood. Roebuck is the most affordable neighborhood in Birmingham, with a median listing price of $69,900 on Realtor.com, a real estate listings website. Some of the best neighborhoods in Birmingham, Alabama are Highland Park, Greystone and Crestwood South. Here are some of the best neighborhoods in Birmingham where you can consider buying investment properties.
1. Huffman – Birmingham, AL
Huffman is a quiet and peaceful area in Jefferson County. Living in Huffman offers residents a dense suburban feel and most residents own their homes. The Median Home Value in Huffman is $126,000 and the Median Rent is $750. Zillow.com has currently 24 Single Family Homes for sale and 5 Houses For Rent in Huffman, Birmingham.
2. Spring Lake – Birmingham, AL
Spring Lake is also in Jefferson County. It is a suburban neighborhood and most residents own their homes. The Median Home Value in Spring Lake is $104,900 and the Median Rent is $1,000. Zillow has currently 27 homes for sale and 8 homes for rent in Spring Lake, Birmingham.
3. Liberty Highlands – Birmingham, AL
Liberty Highlands is a neighborhood in Birmingham which offers an urban feel and most residents own their homes. The Median Home Value in Liberty Highlands is $161,000 and the Median Rent is around $1,000. Realtor.com has currently 10 homes for sale and 4 homes for rent in Liberty Highlands Birmingham.
4. East Thomas – Birmingham, AL
East Thomas is an urban neighborhood in Birmingham. The Median Home Value in East Thomas is $65,186 and the Median Rent is $1,000. Realtor.com shows there are currently 4 homes for sale in East Thomas, Birmingham.
5. Hooper City – Birmingham, AL
Hooper City is a large suburban neighborhood in Birmingham. The Median Home Value in Hooper City is $60,000 and the Median Rent is $854. Realtor.com shows there are currently 4 homes for sale 1 home for rent in Hooper City, Birmingham.
6. Sherman Heights – Birmingham, AL
Sherman Heights is an urban neighborhood in Birmingham. The Median Home Value in Sherman Heights is $65,000 and the Median Rent is $753. Realtor.com shows there are currently 11 homes for sale in Sherman Heights, Birmingham.
7. Roebuck – Birmingham, AL
Roebuck is an urban neighborhood in Birmingham. The Median Home Value in Roebuck is $69,900 and the Median Rent is $1,000. Realtor.com shows there are currently 31 homes for sale in Roebuck, Birmingham.
8. Bush Hills – Birmingham, AL
Bush Hills neighborhood in Birmingham offers a suburban feel and most residents own their homes. The Median Home Value in Bush Hills is $77,114 and the Median Rent is $750. Realtor.com shows there are currently 11 homes for sale in Bush Hills, Birmingham.
9. Crestwood North – Birmingham, AL
Crestwood North is a suburban neighborhood and one of the best places to live in Alabama. The Median Home Value in Crestwood North is $179,710 and the Median Rent is $970. Realtor.com shows there are currently 22 homes for sale in Crestwood North, Birmingham.
10. Roebuck Springs – Birmingham, AL
Roebuck Springs is a suburban neighborhood in Birmingham. The Median Home Value in Roebuck Springs is $120,113 and the Median Rent is $980. Zillow shows there are currently 17 homes for sale and 1 home for rent in Roebuck Springs, Birmingham.
Birmingham, AL Home Prices & Trends 2020
Housing market trends for Birmingham, AL seem promising for investors as houses for buying are moderately expensive with median prices as high as $259,000 for a condo/townhouse and as low as $15,000 for 2 bedroom house located in the Rising – West Princeton neighborhood. This is a good sign for both investors and potential residents.
Apartment rent price ranges from $1,100 as a high and $300 per month as a low. Birmingham has a median age of 35.7 with a median household income of $32,404. The median property value in Birmingham is $86,900 with a homeownership rate of 46.4%. This brings out the job prospect of this area as promising as many people are set to have descent income generating opportunities suiting the growing residential population, but more needs to be done in this sector.
The median list price per square foot in Birmingham is $70, which is lower than the Birmingham-Hoover Metro average of $122, according to Zillow.com. The median rent price in Birmingham is $850, which is lower than the Birmingham-Hoover Metro median of $1,050.
The percent of delinquent mortgages in Birmingham is 2.1%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Birmingham homeowners underwater on their mortgage is 26.5%.
Birmingham Real Estate Investment
The advantages of investing in Birmingham real estate are that they will give you a 100% guarantee of returns and a great profit over time. Mortgage rates are ever increasing in Alabama State and in a few years' time, business centers and market centers will be set up in Birmingham.
Another thing is that in January 2015, the International World Game Executive Committee selected Birmingham as host for the 2021 world games center. The natural beauty of this city will obviously attract many different residents to live in the area. The famous tourist attraction sites such as the Shades Valley, the Red Mountain on the north of the city and the most magnificent the Cahaba River basin, are calling back people to the city of Birmingham.
The city was named among the United States' most diverse ecosystems. Birmingham investment properties have a capitalization rates up to 15.0%. For Birmingham investment properties, you need to pay lowest taxes in the US.
The aim of this article was to educate and motivate investors to buy Birmingham Investment properties. However, we always recommend to do your own research and take help of a local real estate consultant. Birmingham's development in the next coming years is a positive sign for the real estate investors looking to buy investment properties in Birmingham, Alabama.
Buying an investment property is different from buying an owner-occupied home. Our Birmingham investment properties for sale are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Birmingham, Alabama.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.