As 2022 wanes, you might be considering a rental property purchase. Here are 5 things to help you go forward.
It’s November 2022, and you’re thinking about buying a rental property. But before you dive in, take time to do a little research. The time of year makes a difference in a rental purchase, along with several other key factors. Take a quick read through these helpful Q&A tips to get insight into making an informed decision.
- What time of year is the most advantageous to invest in rental property?
November, December, and even January and February can be the best times to invest in rental property. Cooler weather tends to put a seasonal chill on home buying, and fewer buyers decrease your risk of competing against all-cash, excessively high price offers, giving you more negotiating power with sellers.
- How does the current real estate market look for rental property investing? According to the National Association of Realtors (NAR) the market is still resilient, especially in Texas. The median home price has jumped every month in 2022, before falling slightly in August. For landlords, it looks like the rental market has improved greatly with rent price change being 92% greater than the change in home prices since 2000.
- What type of real estate property is best to get a good ROI?
Residential real estate can be anything from a single-family house to a condo in a multi-unit building. Residential properties have multiple uses — they can be turned into a rental property, Airbnb, VRBO, or flipped to increase the overall value of the property. Texas is outstanding for rental property investing. It is landlord-friendly, offers job diversity and affordable housing prices, and does not charge a state income tax.
- Why does the economic outlook make a difference in when I buy?
The overall health of the economy has an impact on property buying. This is generally measured by economic indicators such as the GDP, employment data, manufacturing activity, the prices of goods, etc. Interest rate impact the price of real estate and government legislation can boost or hinder real estate demand.
- How important is the general location of the property I buy?
Supply and demand are two factors that will always play a role in real estate appreciation, and the location of a property is generally the single most important factor. Without even considering nearby amenities, the location of your property purchase can have major implications for its future value. Some neighborhoods and communities simply appreciate faster than others.
Hopefully, these tips will help resolve your questions about buying an investment property
during the fall and winter months. If you want to learn more, please let us know.
We’re Cousin James Management.
Cousin James Management is a family-owned business with more than 25 years of experience working in numerous capacities within the real estate market. Not only are we a recognized property management company, we also have the expertise of licensed real estate pros who can help you buy, sell, or lease your property.
Contact Cousin James Management for answers to your questions about property ownership, rental leasing, and expert property management. Working with us will help you realize a smarter, faster return on your investment.
Comments are closed.