Will Investing in Property Remain Affordable?

Reblogger Mark Loewenberg
Real Estate Agent with KW of the Palm Beaches BK3102116

Zach has it correct here, this is an incredible time to make your purchase because of the incredible low rates that helps keep your costs down tremendously!

Original content by Zach Devine

Will Investing in Property Remain Affordable?

If you are hoping to purchase an investment property in the upcoming years, it is important to understand what might happen to residential mortgage rates. According to the Federal Reserve Open Market Committee’s meeting this summer, it is expected that mortgage rates will remain low for at least the next year, and possibly into 2014.

This summer, mortgage rates have reached new record lows, making it a good time for prospective landlords to purchase their investment properties. If you buy when interest rates are low, you:

  • Have lower monthly carrying costs
  • Might be able to generate a larger profit, as low mortgage rates can mean that those carrying costs fall below average rental prices
  • May be able to purchase a larger home, or a home in a more desirable rental neighborhood
  • Can put aside more money for property emergencies or invest in repairs and renovations that will improve the value and appeal of the home

Of course, there are other factors that come into play. After a low period, at some stage, mortgage rates have nowhere to go but up. Factor in the potential for additional costs down the road to determine if the property would be affordable to you if it were temporarily vacant. In order to ensure that the property remains affordable, you’ve got to think about what might happen in the future, rather than simply getting excited by the low interest rates. After all, an investment property needs to make you a profit while you’re renting it out to be worthwhile, and it should also offer you a return when it comes time to sell and move on to other things!

Zach Devine, Marketing

RentApp.com (A Service of AppFolio)

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,037,169

Mark Loewenberg

KW 561-214-0370
Where can I find deals on homes for sale?
*
*
*
*
Spam prevention

Additional Information