Homeowners Get the Highest Rates of Return When Selling in These 3 Cities
If you’re thinking of buying a home in Las Vegas — congratulations! You just might make a Bundle when the time comes to sell it.
That’s because the average annual internal rate of return for a homeowner in Sin City is 13.29%, according to a recent analysis by Betterment.
The so-called IRR is an investment’s return based on its related cash flows over time. In the context of owning a home, that cash flow includes the cost you pay each year to live there and maintain the dwelling.
Charlotte, North Carolina, and Denver round out the top three metro areas with the highest Annual internal rate of return, the firm found.
Property appreciation is only one criteria in determining how much you’ll earn on your Investment once you sell, Holeman said.
“The biggest factor is how expensive those homes are relative to what you can rent,” he said. “It’s how expensive the home is versus the cost of renting.”