Now might be the perfect time to put invest in rental property. “As with many investments, the best time to get in is when most others are sitting on the sidelines,” reports CNN Money online. There are several reasons why now may be the best time to invest in rental property. Mortgage rates are at a 40 year low and home prices are almost rock bottom which will better enable you to enter the market. Recently, there has also been an increase in rent prices so landlords have been able to charge more for rent and the demand for rentals has risen in over 500 cities.
You may have to hold onto this property for a number of years to insure that the real estate market has enough time to recover and your investment to mature. The typical investor today plans on holding on to their property for 10 years according to a NAR survey.
If you are looking for a good deal, check with a local real estate agent who knows the area well and can educate you on your potential rental market. To make sure that you are going to charge a fair price for rent, you can check Craigslist for comparisons in the area. Once you have crunched the numbers, you can weigh your investment options and look for a property that fits your budget.