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Reasons to invest in Connecticut real estate

On Behalf of | Nov 10, 2022 | Real Estate |

Real estate may be suitable for investors interested in passive income and a venture that appreciates long-term. Some of the investment benefits unique to real estate include net cash flow, leveraging funds, portfolio diversification and a multitude of tax benefits. Picking the right location for property investment is paramount. Connecticut is one of the leading states in the U.S. with a housing market currently primed for property investors. For many, investing in property ownership provides more fulfillment than most other investment opportunities.

Investing in real estate

Many investors purchase single-family homes to collect rent monthly while the property value appreciates over time so it can be sold for a profit. The same strategy is used with strip malls and other commercial properties. Purchasing apartment buildings with multiple units can provide an even steadier stream of income. You may also invest in real estate investment trusts, or REITs, which involves buying shares of companies managing commercial properties for dividend payments or capital appreciation, like common stock.

Investing in Connecticut real estate

The average median value of Connecticut households is nearly $70,000 higher than the national average. Monthly rent in Connecticut is close to $130 higher than the national average. Population growth in the state is just over 1% since 2012, compared to 6.23% in the U.S. Rental prices have been increasing closely behind the national average, and residential real estate prices have declined while the national average has increased over the past 9 years.

The rate of homes occupied by tenants in Connecticut is about 2.5 points lower than the national average. The state has an above-average median income and over 40 colleges and universities. Connecticut is located in a high-commerce region conveniently nestled between major cities like New York, Boston and Philadelphia. Some of the most attractive cities for property investors right now include Stamford, Hartford, Milford and Fairfield.