Is Now a Good Time To Buy an Investment Property?
Here are a few reasons why now is a good time to buy investment property.
When people think of investing, they typically think of stocks, mutual funds, and more recently, cryptocurrencies like Bitcoin. But investing in real estate has several benefits associated with it, too. For example, it comes with great tax benefits and hedges against inflation.
One reason why now is a good time to buy an investment property is that interest rates are still low, and unlike over the last two years, we have less uncertainty about employment. That’s important because most investment properties are rented out, and as an owner, you’ll want to know that your tenants are going to be able to pay their rent.
We’ve also seen a lot of gains in the stock market, but things may not continue in that direction forever. On the other hand, a real estate investment is generally considered to be more stable in the long term. Most real estate investments are long-term investments because both the costs of entering and selling are high.
"While single-family home prices have risen, you’d be able to charge a lot more for rent than you would have a couple of years ago."
Lastly, in our DC area market, we’re starting to see a shift towards a buyer’s market. Some sections of the market, like the condo sector, exist in micro buyer’s markets. A condo can be a great investment property, as they involve less maintenance than a house, and in many of our condo markets, prices are lower.
Single-family home prices have gone up considerably, but considering the long-term potential, they still represent some great opportunities for investment. We’ve seen many landlords selling their investment properties (especially single-family homes) in order to cash out on the equity they’ve built. That has created a huge demand for single-family home rentals, and while those properties are more expensive, you’d be able to charge considerably more to rent those properties than you would have two or three years ago.
If you’re interested in becoming a real estate investor or have any questions about investing, don’t hesitate to reach out to me via phone or email. I’d love to help you.