A quick look at two aspects of the rental market and how they impact Investment Properties and First Time Buyers. Why together, bare with me and you'll see.
With the recent price appreciation the market has seen over the last few years many feel that they are just better continuing to rent a home. We respect that, but if you have thought about taking the step towards home ownership and real estate investing then maybe this will inspire you to press forward.
Did you know that the U.S. is the youngest of the home-building nations. History shows us every country has gone through a cycle whereby it breaks into two parts. Those who own a home and those who don't. When this happens, rental rates begin to SOAR! In the U.S. we are in the beginning cycle of this time in history as evidenced by the fact that the national rental rate increased over 5% in the last 12 months. In addition, since 2001, the rise in rental rates has outpaced inflation consistently.
Obviously this becomes a great benefit to those who own homes and rental properties - especially when the U.S. occupancy rate is now at 96.2%!
So how does that breakdown for us Orange County residents?
In 2006 just over 14% of all real estate sales were investment properties. Rental rates increased 6.4% ranking Orange County #5 in rental rate increases and the area ended the year with a 96% occupancy rate. Today, the Orange County homeowner (on average) devote just about 26% of their income to housing, and are you ready First Time Buyers, renters devote 33% of their income to landlords. Simply put First Time Buyers, that is a 7% savings in your income and does not include the appreciation factor each year.
This real estate blog is designed for a quick look at how owning real estate hits your bottom line. It is our goal to inspire and educate buyers and potential investors on the fact that they can have a piece of the American Dream. Yes, there are probably details that need to be worked out but with the right plan of actions, Remember, It's Possible!
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