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• Mobile, Ala. Real Estate 2019:
Should You Invest In The Mobile AL Real Estate In 2019?
Investing in real estate is touted as a great way to become wealthy. Is Mobile, AL rental property good for investment? Planning to invest in the Mobile, AL real estate market? Many real estate investors have asked themselves if buying a property in Mobile, AL is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Mobile, AL housing market 2019 forecast for answers on why to put resources into this sizzling market. The home prices in the Mobile, AL housing market will be on an upswing all through 2019. The Mobile, AL home prices are expected to rise by 4.5% in 2020. Here are ten real reasons to invest in the Mobile, AL real estate in 2019.
1. The Diverse Economy
Mobile is home to the twelfth largest port in the U.S. It has seen a renaissance of ship building since 2000. There’s an active shipyard on Pinto Island. There are several military contractors at the Mobile Aeroplex; that facility covers 1650 acres and is home to more than seventy companies. As a large metropolitan area, it is home to several hospitals employing more than a thousand people.
This gives Mobile an unemployment rate of around 5%. This is slightly higher than areas like Shelby County but far better than Selma and Prichard. A side benefit of the diverse economy is that the job market doesn’t see booms and busts like cities dependent on tourism or oil.
2. The Large Student Market
The University of South Alabama employs more than five thousand people. Around fifteen thousand students attend the school. Spring Hill College has around 1500 students. The University of Mobile is of similar size. Little schools like Fortis and Remington College dot the area. This creates a large, permanent class of renters for Mobile AL rental properties.
3. The Proportioned Military Market
The military keeps its people on the move, and that leaves most of them to rent instead of buy their homes. The nearly 1000 Coast Guard and other military members at the Aviation Training Center in Mobile create significant demand for Mobile AL rental properties in the area. After all, those coming for aviation training aren’t even going to stay in the area on a two or three year assignment.
4. The Affordable Real Estate
The Mobile AL real estate market is incredibly affordable. The average home value is $120,000. That number includes a lot of older homes. If you include new homes that are a large share of properties for sale, the median home price is around $160,000. You can find high end beachfront properties for sale for less than half a million dollars, almost none of which have a price tag over a million dollars.
5. The Better than Average ROI
The return on investment in the Mobile housing market is better than the state average. The median Alabama rent is less than $800, while the median rent in the city of Mobile is around $900. Note that you’d receive more for a single family detached home than a one or two bedroom apartment. Yet the median home price in the Mobile AL real estate market is 7% less than the state average. This means you’ll see higher ROI from Mobile AL rental properties than rentals elsewhere in the state.
6. The Positive Appreciation Trends
A point in favor of the Mobile housing market is the strong appreciation trend. Their real estate is affordable, but it is going up in value. Appreciation was between 7% and 8% in 2018, and the forecasted appreciation rate for 2019 is around 6%. And the rents demanded for Mobile AL rental properties are expected to go up 6% over the next year, as well.
7. The Complex Economics of the Area
Mobile offers a wide variety of jobs, but the housing market isn’t bid up by a large number of high-paying oil field jobs or high tech firms. This explains why the household income is around $40,000, 13% lower than the state average. This puts the median home price of $120,000 out of range for many residents. The home to price income ratio is greater than 3.1.
This in turn explains why only 55% of residents own their homes; the rental rate in the Mobile AL real estate market is well below the two thirds average for the U.S. This creates significant demand for Mobile AL rental properties that won’t be solved any time soon.
8. The Landlord Friendliness
Alabama like many Southern states is landlord friendly. What is noteworthy is that the state has considered becoming even more so. For example, in 2018, they considered a bill that would make it easier to evict someone who is problematic from a rental unit though they aren’t doing something totally illegal like manufacturing meth in their unit.
State law previously said they could only have 4 curable breaches of the lease in a year, while the proposed rules would have lowered it to just 2 such breaches or else they’d have to move out. Alabama already allows you evict someone in as little as 19 days.
9. The Option to Profit from Short Term Rentals
Mobile, Alabama is a beautiful, beachside community. What makes it unusual is that several Mobile, Alabama suburbs have come to agreements with AirBnB regarding taxes. This means you can rent out Mobile AL rental properties on the beach via short term rentals without worrying about the local government cracking down on you.
10. The Low Taxes
It isn’t what you earn in the Mobile housing market that matters, it is what you keep. Fortunately, taxes are low in the Mobile AL real estate market. Property taxes on owner occupied properties are less than half a percent of assessed value. Without the owner occupied exemption, the property tax rate on Mobile AL rental properties averages 0.77%. The average state and local property tax bill combined is less than a thousand dollars. The state does have a state income tax, but that is lower than the American average, too.
• Mobile Alabama Real Estate Investment:
Maybe you have done a bit of real estate investing in Mobile, AL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Mobile, AL. The Mobile housing market combines low property taxes and ongoing carrying costs, good long-term fundamentals, and a favorable market for real estate owners. And this is why you should consider investing in the Mobile, Alabama real estate market.