If you're thinking about investing in real estate, you're probably asking yourself, "is now a good time to invest in properties?"
That's a fair question because you don't want to overpay for a property only to have trouble finding tenants to fill vacancies or get stuck with a high fixed-rate for your mortgage. There are a lot of factors that go into whether or not the real estate market is good for investing, and right now, all of those factors are pointing towards it being a great time for making an investment.
Keep reading to learn more about why you should take the leap and start investing in real estate today, rather than continue to wait.
Mortgage Rates Are Low
If you're investing in a property, you're more than likely going to be taking out a mortgage in order to do so. That's why it's important to consider fixed mortgage rates, which can drastically change the amount you pay towards your property.
Of course, your interest rate will be affected by a number of personal factors including your credit score and yearly income. But mortgage rates are also determined by the state of the economy, inflation, economic growth, and the overall housing market.
With all of these factors considered, the average mortgage interest rate is low compared to the last twenty years. On average, you'll find interest rates of around 3.5%-4.5%, depending on what type of mortgage you take out and your personal financial health. To put those numbers in perspective, interest rates were almost double that just over a decade ago.
You never know how interest rates will change from year to year, but it's hard to see rates getting much lower than they are now. That's why jumping into it now is a great idea; you can get an attractively low fixed-rate mortgage.
There Are a Lot of Renters In the Market
Millennials aren't buying houses and are choosing to rent single-family homes from year-to-year instead. What does this mean for someone interested in investing in real estate?
Well, it means there will be no shortage of potential tenants to fill your vacancies. With such a big pool of renters out there, you won't be left vacant for long and can even increase rent prices to reflect the overwhelming demand for rental units.
The rental market shows no signs of slowing down, either, as Millenials are hesitant to settle into a fixed 30-year mortgage. This means right now is a great time to get into the game and find your footing while the demand is still hot!
Tenants Are Choosing Private Landlords More Than Ever
Not only are there a ton of people looking to rent homes right now, but they are opting for private landlords as opposed to renting an apartment unit.
If you can offer the basic necessities that tenants are looking for, such as updated appliances, then you'll find yourself flooding with tenant applications looking to rent your property.
The Earlier You Invest, the More You'll Make
If you're thinking to yourself, "well, it won't hurt to wait a few years to invest in real estate", you might be making a big mistake. This is because the earlier you invest, the more your property will appreciate over time.
Long-term appreciation is the main goal when investing in real estate, and the longer you hold onto your property, the more it'll increase in value.
So unless you aren't in a good place financially right now, then you should choose to invest as soon as possible. You can make significantly more money by choosing to invest a couple of years earlier.
So, Is Now a Good Time to Invest In Real Estate?
If you're asking yourself, "is now a good time to invest in real estate", the answer is a resounding yes! Not only will you find low fixed-rates on mortgages, but the earlier you invest, the more you'll make long-term. The answer is always to invest now rather than later, as long as you are in a good place financially.
If you're looking for the best real estate investment services in Clearwater, FL, and the surrounding areas, then look no further!
Here at Professional Real Estate Management and Investment Services Inc., we can help you find the perfect property to invest in. Not only that, but we will manage your property and find quality tenants to fill vacancies, and will provide many other services. Contact us today to learn more about how we can help you invest in your future.