If owning property is your way of building wealth, then choosing your properties wisely is essential to each investment you make. There are several criteria you should be looking at, including for instance, Real estate and Land use law, and these will shape your buying decisions. While there are many good reasons to live in the Eastern US, are there any good reasons to own property in this general region of North America? Yes, there are; and we’ve briefly outlined three of them for you right here.
Factors that should be shaping your buying decisions
Before we look at why it’s better to own property in the eastern parts of the US, let’s consider some of the criteria that will shape your buying decisions. With these in mind, you will clearly recognize the value in purchasing and buying property in these areas.
Location
It goes without saying that location is a major consideration for property owners. This criterion can be divided up into several categories, some of which will be more relevant to you than others. For some buyers, crime rate is a deciding factor. For others, it’s more about property size, neighborhood, or distance between the property and another location.
Price
There are some states in the US where property is cheaper. If this is a deciding factor for you, remember to take your Return On Investment (ROI) into account. You may buy a property at a cheap price, but you will then have to sell it at a relatively cheap price as well.
Buying to sell
Renovating a cheap property can also increase the value of a home, but only if you’re in an area where there’s a demand for luxury. Renovating a cheap property in a low-income area may result in the overcapitalization of your investment. Avoid this if possible.
Property tax
Many property buyers will take real estate tax into account when making a purchase. Each state has its own percentage of property tax according to applicable tax law. You can view these individual tax requirements and decide for yourself which state suits your pocket best.
- Eastern US properties offer more land value for your dollar
Various states possess different correlations between the size of a property, the size of the house on that property and the value of the overall land. Tennessee real estate is an example of an eastern US state where this correlation usually works in your favor. In terms of property size, real estate tax and overall property value, Tennessee boasts an excellent ROI for homeowners.
According to wallethub.com, if you purchase a home in Tennessee during 2017 you can expect to pay 0.75% on real estate tax. Considering the median value of homes in this area, you benefit by paying significantly less compared to other states.
This may sound complicated, but what it basically means is that you get more land per dollar that you spend. Less of your money is being paid to the IRS, so you get more value when you purchase property in this state. Tennessee is only one example, but if you look collectively at eastern US states you will find that generally, property investment offers more value for buyers with regards to property tax.
Houses on the eastern side of the US are already generally cheaper than those on the west. Despite this price difference, the property sizes in the east are also relatively larger. This is why buying property in states like Tennessee is such a good investment, because you ultimately receive more land for your dollar.
Taking real estate tax, property size and property tax into account, it’s clear why investors prefer buying property in the east. Generally speaking, if you were purchasing property for the sole purchase of investing (as opposed to living in the house yourself), this purchase makes sense whether you decide to resell, renovate or rent out that property.
- The eastern side of the US is more business/finance orientated
There are other reasons why investing in eastern US properties makes more sense. The eastern side of the US is a hub for business, finance, culture and trading. This is partly why property is valued marginally higher, but it’s also a good reason to live in this part of North America.
The western half of the US is often associated with vacationing and retirement. The Midwest and the South are geared towards family. For those who are still in the process of building their wealth, eastern US states offer a lot more in terms of financial & economical drive. States like New York and DC have a positive effect on neighboring states—even less populated ones like Tennessee. What are these influencing factors and how do they affect their neighbors?
New York
The state of New York is densely populated and boasts one of the strongest economies in the world. This is where you will find Wall Street, a hustle & bustle of financial trading that determines the financial status of millions. This financial hub has a direct and indirect effect on neighboring states—more so than distant ones. That’s because of the wave of economic development that tends to be stronger closer to the source, which is, of course, New York City.
New York also possesses a cultural hub of arts, entertainment, and fashion. This culture is strongly influenced by Europe, which is on the east side of the continent. These various cultural aspects affect the American economy. Property is no exception, which is why investors choose the east when it comes to buying property.
Washington, DC
Governmental operations are centered around Washington, DC. The Supreme Court of the USA is situated in Washing, DC; and it’s also where the president of our country lives and works. Whether directly or indirectly, this also has a strong influence on the economy. Neighboring states are affected by this governmental hub through political & legal influences.
If you look at eastern US states, you will see strong cultural, financial and political development. A snowball effect of modern living tends to drive this part of the country, which is why property investment is so much more lucrative in the east.
- Travelers prefer property in the eastern US
As alluded to earlier, Europe lies to the east of the US. This is considered the origin of first world living and tends to influence those who live on the eastern side of America. This exposure is unavoidable because many US residents travel to Europe and many more do business with first world financial giants like Switzerland, the United Kingdom, and other western European countries.
Traveling takes financial freedom. Those who travel often prefer to spend less on their travels, and it goes without saying that traveling to Europe from eastern US is cheaper than traveling from the western side. North eastern states tend to travel more than the rest of their neighbors. This doesn’t necessarily mean that western residents are less worldly than eastern residents, it’s simply a way of life that has developed over the decades.
It’s important to reiterate that these cultural (way of life) factors will influence property prices in the eastern parts of the US. They will also influence the kinds of people that choose to buy in these areas. Simply put, your return on investment will be higher if you buy in the eastern US. Should you also choose to live there, you will be pleasantly surprised at how your economic growth will accelerate.
