According to Greg Rand, CEO of OwnAmerica, rents are rising faster than last year, so now is the time to purchase an investment property. Property values and interest rate are at an all time low, along with a 5.17% annualized growth rate for rents, makes this a good formula for a sound long-term investment. There are 1.4 million new renters this year, which means apartment construction hasn’t been able to keep up with demand. Many former home owners are looking to rent a single family home, so demand is at a high.
April’s survey by Realtor.com found that by a three to one margin, investors plan to be
more active in their local markets compared to typical homebuyers in the next
24 months, and 69 percent of investors say it’ll be easier to find properties
in the near future. 59% of investors are newcomers to the real estate world. 33% say they will purchase another property in the near future.
Author of “Crash! Boom,” Rand argues that even in the Great Depression, owning real estate was always better than not owning real estate. Holding real estate for the long
term has always been a formula for success and most family wealth has been
accumulated by purchasing real estate and keeping it in the family for many
generations. Real estate plus time usually equals success.
There are 6 million people who went from being owners to being renters, Rand
says. “The stars are aligned to make this the best time in modern history to be
a landlord,” he wrote in his book.
Are you thinking about investing in Real Estate?