Benefits of Owning Rental Property
If you’re not currently a landlord, you better consider becoming one. According to U.S. Census Bureau Statistics homeownership is at its lowest level since 1996. In 2013, the National Association of Realtors forecasted that rents will increase 4.6% on top of the 4.1% increase that took place back in 2012. That’s an 8.7% increase in rents over the last two years! What better reason do you need to become a landlord? Well I can give you quite a few more over the course of reading this manual, so take a seat and get reading.
Finding Affordable Rental Property
With the massive amount of foreclosures that happened during the housing crisis we have seen a steady stream of renters re-entering the market from their distressed housing situation. More intense credit screening processes by banks have forced potential homeowners to step back and rent while they either better their credit score or save up more money for a down payment. Some recent estimates have shown that 35% of US households live in rented dwellings. To break this down into real numbers that’s 43 million households, this also happens to be at the highest rate in more than 10 years.
Increase in Cost of Rent
Rents are continuing to increase while purchase prices remain low on the end of the housing crisis thus now is the time to invest and build wealth. One recent study back in 2013 by CNBC showed that half of the renters in the United States have to pay more than 30% of their income on housing. To give you an idea of how that compares to past years, 10 years earlier that figure was only at 18%.
The advantages of owning rental property are numerous, but among the top is the ability to have the renter pay your mortgage while still being able to realize the appreciation of the property in value. Low real estate prices and lower interest rates make it a prime time for an investor to enter the real estate investing market with a rental.
“If you’re not going to put money in real estate, where else?” –Tamir Sapir