Most of the news about the housing market lately has been dismal. However, the one bright spot is being overlooked by many – the rental market. Rental demand is up and and rental rates are rising. Many foreclosures victims (estimated north of 4 million) are now renters. Many prospective homeowners are concerned about losing their jobs or about prices falling further, so they are reluctant to buy. As with many investments, the best to to buy in is when others are sitting on the sidelines.
Currently, many factors make it an attractive time to buy real estate. Mortgage rates are at historic lows (current 30 year fixed rates are just north of 4%). Prices are considerably lower than they have been in years, and demand for rentals has risen in most cities and markets in the US. Hotpads.com has reported that rental rates have increased 11.6% in 2010.
Most investors plan to hold onto their income producing properties for 10 years, according to the National Association of Realtors. If you can hang on that long, the investment should produce a solid gain for you, especially if you finance the purchase.
Feel free to call or email me directly for more information about current rental property opportunities in our local market.