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In the November 2011 Issue of Property Investor News
Invest USA
The opportunities to buy cheap houses in cities like Detroit and achieve high rental yields of 15% or more have been well reported, especially in Property Investor NewsTM, but many property investors are less than comfortable with the idea of buying into a city that has a rapidly declining population. The fear is that the street you buy a property on could become a ghost town within a year or two as populations shift to more desirable parts of the city that have become more affordable.
When a city has a rising population the long-term prospects for price rises and low void periods increase and the location within the city is less relevant. However, once a city's population starts to decrease, location is everything and anyone that knows their local market could instantly tell you which parts of that city would still be popular with both renters and buyers even if the population of the city began to shrink. For example, if London's population decreased from 8m to 6m and property prices started rapidly falling, the population of Kensington & Chelsea and some other West London boroughs would probably stay the same but the number of people living in east and southeast London boroughs would probably fall substantially as previously unaffordable areas become more affordable.
In this article we will focus on regions, states and cities in the US that are growing in size and that may also offer property investors high rental yields.
High yield hunting
One property investor, Andrew Charalambous, believes he has found the perfect location for high yield/low risk investment in Columbia, South Carolina. He has invested in the city over the past few years and now sells units to property investors in the UK through his website highyieldhunter.net.
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