Given the downturn of the economy, many people who were once homeowners have now become renters and for many others, with more stringent lending practices, loss of savings, and job insecurity the hope of homeownership may be years away. But this isn't necessarily a bad thing.
Financially it makes more sense, just from a monthly budget perspective, for many people to rent. The days of paying 66% more per month, just to say you own a home, are long gone. People are more cautious about their spending and the bursting bubble of the housing market was also a bubble burst for fantasies of homeownership.
The rental market is also cyclical, just like the resale and new home sale market. Right now the resale market is saturated with inventory. High inventory drives down prices. But combine this with less people being able to afford a mortgage or even qualify for one, the rental market is ripe for investors. When more people are looking to rent, demand goes up, and rental prices will rise.
If you are looking to build your portfolio or just get started in your endeavors as a landlord, now is the time to start crunching some numbers and scouring the market for those great opportunities that are out there.
Some strategies to consider when looking for an investment property are to find a house that is located near areas of stable employment and employment growth. Look for homes supported by travel infrastructure such as an airport, trains, bus lines, freeways, and major highways. A great rental property will also be located in an area convenient to shopping, schools, parks, libraries and recreational activities. These factors will make your rental property more attractive to renters.
The Triangle area has all of these factors combined with affordable prices. It's a great time and place to be an investor in the Raleigh, Durham and Chapel Hill areas. With three major Universities and numerous colleges, RDU International Airport, Reasearch Triangle Park (RTP), tons of recreational opportunities, great schools, decreasing unemployment, and mild 4 seasons weather most residents will agree that this area is a great place to live and work.
Do you have kids heading off to college in the next few years? Have you thought about buying a rental property near the University your child will attend? This is a smart strategy and the perfect gateway into investing. First of all, you know your tenant. Second, you get a tax write off. And third, why pay someone else rent when you can pay yourself?
Properties near Universities are generally a good option because they meet most of the criteria discussed above and you always have an endless supply of renters. Below are the bus routes for our three local Universities; NC State, UNC and Duke. Locating a property along these routes would be a good option.
At The Bliss Real Estate Group we work hard to understand the market as it relates to our Buyers, Sellers and Investors. We like to provide options, education and expert advice to help our clients make the best decisions for their financial future. Whether you are relocating to the area or you are an out of town investor looking for opportunities, foreclosures, multi-family or other listings, we are here to help.
Give us a call to set up a consultation to discuss your unique situation and your long term and short term goals. (919) 467-0707
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