Are you looking to invest in Norfolk, VA real estate? This can be a great idea if done properly!
A real estate investment can help you create wealth, diversify your investment portfolio, and earn you a passive income month after month.
That said, real estate markets aren’t all created equal.
Some carry more potential for higher return on investment than others. It’s for this reason that proper diligence is required for a successful real estate investment.
Norfolk stands out as an ideal investment location in Virginia for many reasons. In today’s article, we’ll go over the top reasons that make investing in Norfolk a no-brainer for any savvy real estate investor.
Why Invest in Norfolk, Virginia Rental Properties
1. Norfolk has a strong economy.
Norfolk is the commercial and cultural center for the entire Hampton Roads area. In fact, for this reason, it can be difficult to separate the economic characteristics of Norfolk from those of Hampton Roads.
One feature fueling the economy as a whole is the surrounding waterways. The deep water channels serve as major export and import arteries across the Mid-West, Mid-Atlantic, and international destinations.
2. Strong military presence.
Hampton Roads is home to over 80,000 active military members, and Norfolk alone is home to over 5 military installations. These include Naval Air Station Oceana, Naval Station Norfolk, and Camp Elmore.
The year-round presence of these workforce equates to a strong demand for rental housing. What’s more, the average military order duration spans anywhere between three and five years. This presents a great opportunity for investors looking to invest in long-term rentals.
3. A thriving tourism industry.
Virginia and Williamsburg have traditionally been centers for tourism in the region. But with the rebirth of downtown Norfolk, things are beginning to change. The construction of a cruise ship pier in downtown in Norfolk is driving up tourism numbers and becoming an important focal point for the region’s economy.
The increasing tourism provide a great investment opportunity for investors looking to invest in short-term rentals. The peak season for short-term rentals usually begins in May and ends in September. Between September and May, you can keep your rentals busy by renting them out to snowbirds coming from up North.
4. There are many job opportunities in Norfolk.
Norfolk is home to a large number of companies that set up headquarters there. These include:
• Landmark Communications
• FHC Health Systems
• BlackHawk Products Group
• Sentara Healthcare
• Portfolio Recovery Associates
• Norfolk Southern
• Lombart Instrument
The presence of such companies ensures a steady stream of job seekers to the area. In turn, this presents a great opportunity to investors looking to set up residential housing units.
5. Plenty of neighborhoods with potential for long-term growth.
Norfolk is a diverse community that offers everything from a vibrant downtown to charming historic areas. Some of the best Norfolk neighborhoods to invest in include Young Terrace, Park Place, Titustown, and more.
In short, you won’t fall short of investment ideas. Whether you’re looking to target students, tourists or families, Norfolk will give you plenty of options to consider.
6. Good local education.
Are you looking to buy an investment property to rent to families? If so, then Norfolk is a great choice. Norfolk is becoming the top choice for young families moving into the area, as children have access to quality education here.
As a matter of fact, two schools were given the Purple Star award recently. The two schools were the Mary Calcott and the Tarrallton Elementary School.
7. Property values are increasing.
Yet another reason why you should consider investing in the Norfolk real estate market - homes in the area are appreciating nicely for property owners. The annual growth of home values has been 13% since June 2020.
8. Virginia is a moderately landlord-friendly state.
The rental laws in Virginia tend to favor landlords over tenants. To begin with, there are no rent-control laws in place. This means that you may be able to increase rent as you please. Obviously, overcharging will mean nobody will want to rent your property, so this should be done reasonable.
Secondly, landlords in Virginia have a large amount of freedom when it comes to picking tenants.
9. There are abundant activities in the region.
Visitors and residents have no shortage of activities in Norfolk. You can take a Naval Base Cruise, stop by the Hampton Roads Naval Museum, tour the Battleship Wisconsin, or experience the city’s history firsthand by visiting Nauticus.
If you love the outdoors, there are a wide variety of options to consider as well. Virginia Zoo is an excellent family outing. The Norfolk Botanical Garden is an absolute must-see attraction.
And, if you're an art lover, then you’ll find the Chrysler Museum of Art to be a treat. It features outstanding collections including a fascinating glass collection.
The Bottom Line: Why Buy Norfolk Real Estate Investments
Location is key for a successful real estate investment, and Norfolk stands out this regard. Among other things, it has a year-long military presence, a thriving local economy, plenty of jobs, and has a ton of fun activities for residents and visitors alike.
Is this your first time investing in real estate?
If it is, then hiring a professional is in your best interest. Investing in real estate requires experience and knowledge in order to minimize risk as much as possible.
Rent Easy is a proven and trusted property management company serving the Hampton Roads area. We can help you find the perfect investment property in Norfolk, as well as help you manage your day-to-day operations. Get in touch to learn more!
