Investing in a Property in New Orleans
Whether you are a real estate investor or someone who is using real estate as a mode of investment for his future, choosing the location wisely is the key to success. Saving a few thousand dollars but choosing the wrong location can make a huge difference in your rate of return. This is where New Orleans comes into picture. Investors from as far away as New York and California are coming over to this city in Louisiana in search of their dream property. These investors are discovering what the locals have always known. Investing in New Orleans luxury homes can be very profitable for you.
Investors have profited in a big way with their properties in New Orleans in the past. Last year was no exception with a booming housing market. This trend is expected to continue in 2017 as well. However, before taking the first step, it is a good idea to know a little bit about New Orleans real estate.
Profit from high rentals in New Orleans
Rental rates in New Orleans are quite high at the moment. This means that you should buy a property in this city and rent it out to easily pay your monthly installments. However, a vibrant real estate market is not just for buyers as those who invested in a property in New Orleans earlier also have a great opportunity to reap the rewards as they can sell off their investment to book profits. Good news for potential investors is that mortgage rates are at a record low at present.
Property prices are leaping ahead but they are still manageable
If one goes by rate of increase of real estate prices in New Orleans, he learns that it was more than double of the national average of 4.9%. Property prices in New Orleans increased on an average by 10.9% in 2016. Despite this increase, property prices in this city are still quite affordable from the standards of New York, San Jose, L.A, and some other metro areas across the country.
New Orleans continues to attract employees in diverse fields
New Orleans has a diverse economy. It is a major hub for not only Hollywood but also great for entrepreneurs and business community in general. It is also a center of activity for people associated with medicine world. Therefore the city continues to attract people from all walks of life who are ready to pay high rents to be able to live and work here. New Orleans is an important tourist destination because of its historical sites, structures and beautiful architecture. All these aspects confirm the fact that you can expect a high rent from the property that you are planning to buy in this city. If you do not have the time to look after the maintenance of your property and the process of selection of tenants, you can easily leave the responsibility on a property management company.
Think big on Big Easy
If you can afford, it is the right time to invest in New Orleans luxury real estate. New Orleans is a city where citizens love to live lavishly. During Mardi Gras celebrations alone, millions of dollars are spent by New Orleans people on partying on the streets. New Orleans, also called Big Easy, is the birthplace of Jazz music and it is also a place where foodies converge during the month long celebrations to devour on culinary lights from cuisines as varied as Cajun and Creole. One can get a glimpse of New Orleans lifestyle during Mardi Gras festival. Big Easy , the biggest port of the country, also happens to be the commercial capital of Louisiana.
Reasons why there is demand for luxury real estate
Luxury real estate is bouncing back in New Orleans. It is partly because of the rich and wealthy homeowners who desire to be in this prime location to enjoy luxury lifestyle and also Mardi Gras celebrations. It is also because of the steadily rising demand for luxury property from the customers. As prices increase cutting along all types of residential units in New Orleans, there is renewed interest among the buyers for luxury homes for sale. These investors are hoping that they can reap the rewards in the same manner as buyers of single family homes and condominiums are getting. As prices of homes go up, more and more customers are clamoring for luxury property in New Orleans. This attraction and craze for luxury homes also stems from the fact that there is allure of the multicultural environment of the city among the people. The architecture of New Orleans, serves as another big attraction for the tourists and the investors looking for a place to buy properties. This architecture has influences from European, African, and Caribbean cultures. You can feel and experience these influences in Italian estates, Greek mansions, Creole cottages, and of course in modern high rise buildings and luxury condos for sale.
There are not just historic districts in New Orleans but nearly 20 specially designated cultural districts also. One of these, called Warehouse district, has two museums and many art galleries inside it. Art, culture, and architecture are some of the major reasons why luxury real estate is doing so well in New Orleans.
Wide range of luxury homes to choose from
If you have made up your mind to invest in luxury real estate in New Orleans, you have a big price range to choose from. You can get a luxury home in the city for as little as $500k though there are also villas and mansions in upwards of $3 million. There are some that require very costly renovation work (to the tune of several handed thousand dollars). In spite of high prices and such high cost of repairs, luxury homes do not stay for more than a week on the market. This shows the strength of the luxury real estate in New Orleans and the direction in which it is moving.
Neighborhoods to search for your luxury home
The neighborhoods in New Orleans that are considered upscale and where you find a higher concentration of luxury homes and mansions are French Quarter, Bywater, and Marigny. These are also localities where your investment could fetch a high rental value. Median Air BnB rental income in French Quarter is $4050 per month whereas it is $3053 in Marigny. This means that you can recover a high percentage of your monthly installment you pay to your lender for the mortgage loan you avail to buy a luxury home in these neighborhoods. Other localities in New Orleans to consider for purchasing a usury property in New Orleans are Lower Garden District, Treme and Seventh Ward.
Real estate in New Orleans has been going strong for quite some time now. Property prices have also increased much in this cultural hub of Louisiana in last few years. This trend is likely to continue for some time. If you want to make the most of this double digit increase, it is a good idea to invest your money for buying a luxury home in Big Easy. Not only will its price appreciate in the years to come but you can also expect a high rental to get some help in your repayment to your lender.