Investing in an income property can be a savvy financial decision. It’s a great way to bring in essentially passive income, and if you buy a newer property in good shape, you shouldn’t have to do much upkeep. There are a few reasons that now is a great time to invest in income property but there are also a few reasons that it may not be the best time. Keep reading to learn more about both sides of the equation.
Job growth, consumer confidence, and a strong market are good signs
As you consider investing in income property, you want to look at the local and national markets as a whole. The good news is that for several years the economic news has been good. There is once again growth in many sectors, and investors and developers are feeling confident about new ventures. On their end, consumers are more likely to make an investment today than they were ten years ago. These are all good signs for income property investment.
Higher rents mean more profit
Throughout most of California, rents are at an all-time high. This is even truer of multi-family properties. Depending on where you live throughout the area, other types of income properties like retail, office, and industrial may be on the rise too. Investing in a property that you could earn significant rent on could end up being one of the best investments you ever make.
Affordable interest rates are a good reason to invest in income property now
Interest rates have been at historic lows for a while now and experts do not expect this to continue indefinitely. While we do not know for sure when they will go up, we can say with reasonable certainty that they are indeed going to go up. As other companies start to get interested in income properties they are likely to jump on the band wagon and you want to get your interest rates locked in before that happens.
You need the right broker to find the right income property
The truth is that you need the right California Realtor to find the right income property. If you decide that now is the right time to invest in income property you can bet that others have made the same decision. As a result, the inventory can get low. This may lead some to become desperate and jump at any listing they see. This is never a good idea.
When you work with Berkshire Hathaway HomeServices you can trust that we will use our long-term experience to keep an eye on the listings. As soon as something that fits your needs is available we will make you aware of it. We do not believe that you should settle for less than the perfect property. We also offer mobile resources that ensure you are always in the know about what is available. Reach out at (310) 373-0021 to learn more.