Is This The Time to Buy Rental Property?
With recent inflation, fear of recession, declining stock market, may have led most to wonder where should you put our investment dollars. It’s important to have a diversified portfolio but good news is really estate is generally a safe investment strategy-even now.
Decreasing Home Prices
The median selling price of a home in the United States jumped from $327,100 in Q4 2019 to $454,900 in Q3 2022.
The good news is pandemic-related price spike seems to be finally leveling off, due in large part to the increase in interest rates by the Federal Reserve. For investors looking to produce long-term ROI, the steadying prices are a welcome relief.
Low Interest Rates
Though interest rates are higher in 2022 and may raise again to hold off inflation that could lead to recession, the current interest rates—around 5.5 percent to 6.75 percent—are still comparatively low. Remember? The interest rates went upto 7% in early 2000s, up to 10% in 1990s.
Increased Rent
Demand on housing and other economic drivers caused rising rents at a surprisingly quick rate last year. In 2022 it’s already gone up by 10 percent over last year.
Well, If you looking for an investment property, we are here for the expert advice. Call us at today.
