Rental property, and whether it’s a good investment, has been a topic discussed in this blog in the past. Last month I wrote a blog post entitled, Is Investing in Rental Property a Good Idea?That article discussed the fact that owning rental property can be a good investment as long as you are up to the task of being a landlord and all of the responsibilities that go along with it.
The post also talked about items you should consider before purchasing rental property, such as: making sure the rental property that you purchase is a good value for the price, remembering that rental property requires maintenance, understanding that not all tenants pay their rent on time, and realizing that mortgage interest rates on rental properties are sometimes higher than they are on primary residences.
In this article, I’m going to talk about how to determine when it’s a good time to consider purchasing a property that you will use as a rental. In other words, is there an optimal time to purchase a rental? There are many things to consider before committing to the purchase.
An article recently appeared on Yahoo Finance entitled, Good Time to Be a Landlord, but Buy in the Right Places. This article discusses the idea that there is currently a great opportunity to purchase residential rental property in the United States because the economy is improving and there will always be people looking for a place to live.
According to the article, “It’s a good time to own rental property, especially in areas where the economy is really improving. But right now, demand is high for rental properties across most of the nation, making happy investors out of rental owners and their accounts.”
The fact of the matter is that people who don’t want to be homeowners have to live somewhere. And unless they are going to live at friends’ or parents’ houses, they’re going to have to find a place to rent. With the improving economy and the unemployment rate looking much better than it did a few years ago, more people are willing and able to afford long-term leases.
If you are interested in purchasing a residential rental property, and if you are considering buying the property with a mortgage, it’s important that you work with an experienced mortgage lender. Getting the lowest possible mortgage interest rate and the lowest possible closing costs is important, especially when you are purchasing a rental property. Please call the Home Loan Arranger today at (877) 938-7501to get your questions answered and for help getting started.