If you are considering becoming a property investor, you may wonder why you should buy a rental and what indicators to look for when trying to find a property. Here are some signs to look for if you are on the fence about investing in a rental that indicate it is a great time to buy!
Low Interest Rates
When mortgage rates drop, it is much easier to make a property produce income. The best place to figure out what kind of interest rate you will get for an investment property is with a lender. Check in with them to figure out how to start the process, and contact an agent to help you start viewing potential properties.
Check in with your Realtor to see how much your current home is worth! Some investment properties require a high down payment, but low-interest rates, refinancing and knowing your home value can make a difference. For example, if you need to borrow 10%, many homes in good markets can appreciate 10% of their value in just a year, depending on the condition and the location. Chat with a lender to see if you can qualify, and check in with your current mortgage company to discuss your plan.
Scarcity of Units
Do you live in a location where rental units are in high-demand? Maybe your city is growing and the demand for a space to rent is higher than the available properties. If that is the case, now is the best time to find a property to purchase for rental purposes.
If the rate of return in your county is growing, it might be a good time to invest in property. If there is a yearly increase, you can make significant gains over time.
Ultimately, talking to professionals can help you decide if now is the right time to invest in rental properties!
*Real Estate that goes Beyond the Sale*