Why now could be a good time to buy your investment property

Have you been considering buying a rental investment property? Here are some reasons why now could be a good time to buy.

Lower home prices and selection.

In some areas, home prices have either stabilized or decreased slightly. Anticipated interest rate cuts could drive home prices up and intensify competition among buyers. By purchasing now, you have the chance to secure a favorable investment property rather than having to choose from a limited selection in a more competitive market later.

Anticipated decline in interest rates. Interest rates are currently high, however, there is wide expectation that interest rate cuts could come as early as this month. An interest rate drop will make it more affordable to finance your rental purchase. When the dip in interest rates occurs, it is expected that more buyers will enter the market, and this will help to push home prices up. Buying now would allow you to purchase your house at a lower price than waiting. You can always refinance your mortgage when rates get lower.

Growing demand for rental property. Arizona continues to experience sustained growth as people move here to seek employment. With this influx, the rental demand is expected to remain strong, which means that rental prices are likely to increase. This will help to generate more income for your investment.

Rental income. One of the main advantages of owning an investment property is rental income. Initially, this income can help cover your mortgage payments and potentially exceed them, providing extra cashflow. After paying off the mortgage, rental income becomes a more substantial asset, allowing you to save, reinvest or enhance your property.

Potential for appreciation. Investors often choose residential properties for their potential high returns and relatively low risk. Real estate typically appreciates over time, though market fluctuations can occur. Holding onto property for several years generally leads to increased value.

Tax benefits. Owning rental property comes with potential tax advantages. While rental income must be reported, you can often deduct mortgage interest, property taxes, maintenance costs and depreciation. We recommend that you seek guidance from a tax advisor.

Once you’ve purchased your property, you can entrust a property management company with its care. They will handle tenant placement and ensure you receive consistent monthly income. For reliable property management services, contact the Crest Premier Properties Management Team at (480) 838-9558.

480-838-9558
crestpp@gmail.com
CrestPPM.com
4625 S. Lakeshore Drive,
Suite 300, Tempe

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