Future for Rental Properties

By
Real Estate Agent with The Kelly Group Real Estate

Despite the fact that mortgage rates are near record lows and home prices are approximately 15% below prices during the housing peak, the rate of first-time home buyers has reached an all-time low this year. And while young adults and millennials would like to be homeowners, the National Association of Realtors blames heavy student loan debt and flat-lined incomes for holding back first time home sales. Additionally, tightening lending standards make qualifying for mortgages more difficult for those entering the housing market.

However, future home sales for first-time home-buying millennials and downsizing baby boomers are forecasted for smaller, less expensive homes. So these smaller properties will likely move fast in the coming years, especially if they are internet-ready and in good school districts. In the meantime though, with an economy creeping along and flat wage growth, millennials are staying put in the rental market.Fixer-Upper in Newberg, Oregon

 

What does that mean for real estate now? Rental-ready properties will remain an excellent buyer investment with rental income helping home owners save and plan for retirement. And for buyers that have the ability to invest in some up-grades, finding fixer-upper properties in good school districts and near main transportation routes can show an excellent return on investment.

                                                                                                      Investment Property in Downtown Newberg, OR

If your sellers have a property that could suite the bill, make sure your marketing highlights the property’s rental potential. Consider joining forces with a professional, reputable property management team as well. They can serve as an excellent contact for referrals and can help potential buyers understand the income a particular property could generate.

Also, if you’re searching for more sellers, (and really, who isn’t?) make sure your marketing reaches sellers with smaller homes in good neighborhoods. Not only are these properties ideal for meeting the current rental demand, they will also sell quicker, especially as the economy picks up and millennials enter the housing market.

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Kelly Hagglund, Principal Broker, Licensed in Oregon.

www.TheKellyGroup.com

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Rainmaker
6,213,012
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Best wishes for great success with your ActiveRain blogging.

Happy Holidays!

Dec 16, 2014 05:48 AM #1
Rainmaker
48,298
Kelly Hagglund
The Kelly Group Real Estate - Newberg, OR
SW Portland Real Estate Expert

Thank you Roy Kelley! Happy Holidays to you too!

Dec 16, 2014 06:56 AM #2
Rainmaker
537,032
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Good evening.  Our Rental market in all North Idaho is out of control again.  People who want to buy are having a tough time saving money for downs and/or closing with rents they are paying.  Ironically the rents they are paying more than what mortgage and insurance would be most of the time.  Terrible circle.  Thank you for the post.  Mark

Dec 17, 2014 09:04 AM #3
Rainmaker
48,298
Kelly Hagglund
The Kelly Group Real Estate - Newberg, OR
SW Portland Real Estate Expert

Excellent point Mark Don McInnes! It is a continual circle for so many renters out there and it keeps them from becoming home owners... The same can be seen all across Oregon as well.

Dec 18, 2014 01:49 AM #4
Rainmaker
1,304,874
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Kelly Hagglund ~ I've been in the landlord business since 1990 and now own 14 properties in and around LB... & since then, the rental market keeps pushing higher and higher.. I still own the very first property I invested in... When I bought the building, a one bedroom rented out for $450, I now I rent it out  for $1,500...

Dec 18, 2014 05:14 AM #5
Rainmaker
4,602,641
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kelly Hagglund I did read that our first time home buyers are at an all time low, and rental properties have to be in high demand!  

Dec 18, 2014 09:28 PM #6
Rainmaker
48,298
Kelly Hagglund
The Kelly Group Real Estate - Newberg, OR
SW Portland Real Estate Expert

Hi Joan Cox! Yes, we have definitely seen it in our market in Oregon. We have had a lot of walk-ins throughout the year looking for rental property.

Dec 26, 2014 07:06 AM #7
Rainmaker
48,298
Kelly Hagglund
The Kelly Group Real Estate - Newberg, OR
SW Portland Real Estate Expert

Sounds like a great investment Jon Kolsky!! It is good for your clients too that you follow the rental market!

Dec 26, 2014 07:57 AM #8
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Kelly Hagglund

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