In the past 5 years, the typical value of a midlevel home in the U.S. The US has increased by more than 54%, according to Zillow (as of January 2002). The company also forecasts that home values will increase by 173% over the next year. This is an excellent time to buy investment properties.
You don't want to expect a weak market, higher interest rates, or a less dynamic economy when lenders are less generous with funds. A combination of tight home prices, relatively low fixed interest rates, and rising rents make now a promising time for investors to buy. In addition, there is less competition to begin with. Another Benefit of Raising Home Prices? Demand for long-term rental properties increases as more buyers exit the market.
So, if you buy your first investment property right now, you're likely to find a large group of renters waiting to rent it out. This means you should be able to enjoy low vacancy rates and good cash flow soon after purchase. REITs are publicly traded real estate investment firms that allow you to invest in real estate by buying shares. These low mortgage rates have made owning an investment property more affordable for many real estate investors.
Properties tend to gain value over time, so if you buy a rental property and keep it for many years, you could be in a position to make good returns. With all the uncertainty caused by the coronavirus pandemic, choosing whether or not to invest in a rental property is a very difficult decision. But when considering whether to invest or not, buying a property with positive cash flow is the primary consideration for most investors. In most cases, I would be in favor of REITs, but given the current extreme uncertainty, I would recommend investing in private rental properties for further diversification.
This combination greatly favors investments in highly leveraged and inflation-protected real assets, such as rental properties. A good rental property should have positive cash flow, and in general, the higher the cash flow, the better the investment. As with any investment, rental property isn't going to produce a large monthly salary right away, and choosing the wrong property could be a catastrophic mistake. In that sense, buying rental property with a fixed-rate mortgage is essentially a leveraged bet on inflation, and given the current world order, it's an investment that can make a lot of sense.
The 3% you may have bet on the house you currently live in is not going to work for an investment property. To make your job easier, use Mashvisor's real estate investment tools to find your first rental property. If you are thinking of investing in a property in Atlanta, please contact us at Property Services of Atlanta. If you want to invest in a rental property but don't have the money (or the experience) to make it happen, you might want to consider a real estate company.