Are you thinking, or currently hunting for a rental property as an investment? If so, after weighing a number of options you may have asked yourself if this is the right time to buy an investment property. Fortunately, conventional wisdom recommends buying a property when nobody is considering buying a property, which is now.
Whilst it is true that rental properties in Houston and TX are an unbeatable long-term investment, becoming a landlord is by far not for the faint of heart. Managing a rental property can be hard that’s why some choose to hire a local Katy rental management to handle some or all of the landlord responsibilities.
To determine the best time to buy a rental property, take advantage of a rental management companies that can help you manage your investment. A rental property manager will show you the actual real estate price performance by month; which months have the lowest median sales price at closing and stays on the market the longest; and which months have the highest median sales price at closing and shortest days on market.
Conversely, you should also do your own homework by taking an active role in the process by considering the following facts on why rental properties are good investment.
Why Rental Property is a Good Investment
- Mortgage interest rates are at historic lows.
With all the uncertainty brought by the pandemic, now might not seem like the best time to buy any type of real estate property, much less a rental property around Katy. But don’t rule out the idea completely because according to a recent Gallup poll, “Real estate, at 35%, remains the most favored investment to Americans, as has been the case since 2013”. Moreover, mortgage rates are at historic lows, which mean affordability is way up.
- Housing is shifting toward a buyer’s market.
Property owners are usually advised by their realtors to hold off on listing their properties until the spring and summer. While a subset of sellers list their homes in the winter, the pressure to want to sell now may result in a lower offer and close faster. Slow selling months of November and December give buyers a big advantage because sellers are much more willing to make a deal; your real estate agent, mortgage broker, and home inspector will have more time on their hands, making your transaction smoother and faster; not to mention the end-of-the-year tax deductions if you close on your home purchase before December 31st.
- Rental Properties Are a Better Investment than Anything Else
The real estate market will go up and down due to a pandemic or market collapse, but the truth is that demand will never end. People will always need a place to live, unlike other asset classes or the latest tech trend, the real estate market is a very resilient sector. You may be hesitant to consider buying a rental property now, but rental properties will always provide a passive income stream with the possibility of substantial appreciation over time. This makes buying a rental property as a long-term investment very much in your favor.
It’s Time to Buy Rental Property Now
There is actually no shortage to real estate properties and even if there is a problem in the supply, the demand will always be there. With the easy access to investment property listings on the internet, you can find a wide range of investment property options to fit your every need. There are plenty of investment homes to choose from all year round. But does that make now a good time to buy a rental property?
Deciding when to buy a rental property investment not only involves finding the best time of the year that brings the best bargains, but also answering questions on where to look for listings, what location to choose, and calculating potential return rates.
There are a few locations in Houston that have maintained and appreciated in value due to the infrastructure, job growth and location. We would suggest looking at investment properties in Katy and also properties in Sugar Land.
If you’re buying a rental property anywhere in Houston, take advantage of Apex Pro Real Estate Group to do the homework for you. Finding the best rental property to invest in and when to buy require more than understanding of your expectations as the owner, but the real estate market as well.
There is never a perfect time to buy rental property. But with a rental property management, you stay on top of finding potentially better property deals no matter the season. This makes any time of year a good time to buy rental property.
Working with Apogee Properties
Apogee Properties is Houston’s leading real estate management company. We work and live in Houston and our property managers are local. We’ve been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate.
Apogee looks forward to hearing from you and sharing what we can offer to your Houston property. Contact us today to learn more!
