If you’ve considered becoming a landlord, here are 5 good reasons to invest in West Boca Raton Real Estate. According to the U.S. Census Bureau, sales of new residential property have increased almost 17% from this time a year ago. In addition, the year over year median sales price of homes in the nation has increased by 11%.
So why invest your money in West Boca Raton homes?
Reason number 1. Many families can’t afford to purchase.
Prices of many West Boca Raton homes are still relatively low and mortgage rates at 4.5% remain low by historical standards. Despite this fact, large numbers of prospective homeowners cannot afford to buy a home in West Boca Raton.
However, every family has to live in a home of some sort. Because of the excellent reputation of schools in West Boca Raton, demand for homes in West Boca remains very high.
This means that families who cannot yet afford to buy homes in West Boca Raton may happily rent the those homes. Millenials, today’s newest working generation, are holding off on purchasing homes due to various factors including large amounts of school related debt and lack of high paying jobs.
Reason number 2. Renters often purchase, given the opportunity.
Renters in private houses tend to makes those homes their own. If given the opportunity to remain in those homes and purchase them, they often consider buying when financing options become available.
Often families rent because their credit is not good; or, their credit is excellent, but they have not been able to save a sufficient sum for a down payment.
As a landlord, you may be in position to set up a rent with option to buy for these families. You may wish to collect rent for 2 to 5 year period or perhaps longer, while renters repair credit or save sufficient funds. At that point, you may be able to sell your West Boca Raton home at a higher price than you paid for it to a built-in purchaser.
Reason number 3. Collect rent while you increase equity.
Home prices continue to increase, so your investment is likely to rise in value every year. Because demand for rentals is likely to remain strong due to due to an economy whose wages are not keeping pace with the increasing prices of homes, you are likely to increase the rent you charge each year. If you are carrying a fixed rate mortgage, your yearly profits will probably increase. Meanwhile, you should be able to pay off the mortgage as you increase your equity in the property.
Reason number 4. Borrowing money today is not that difficult.
It’s relatively easy to borrow money to purchase real estate if your credit is good and you have sufficient cash for a 30% down payment. In addition, private lenders and funds are often willing to extend credit if you are able to demonstrate knowledge and positive results in your rental business. Others may lend to you in exchange for a portion of equity and / or profit.
Reason number 5. Technology can make landlording easier.
You can be – but don’t have to be – a hands-on landlord. You can deal with tenants and home fix-it issues yourself. Or, you can easily hire a qualified and competent management company for anywhere from 5-10% of the rent roll. Or, you can rely on electronics for help, such as cameras that watch the property, and apps that monitor heat, air conditioning and moisture. Or, if your tenants prove themselves reliable, they can become the defacto managers of the property in return for minor rent concessions.
So, if you have been considering an investment in residential homes in West Boca Raton or areas nearby, this is an excellent time to purchase rental property. Rents in the area remain strong because demand for homes of all kinds – condos, townhouses, and single family homes in West Boca Raton – remains very high.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions