San Diego, CA (PRWEB) November 09, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recent article from the website discusses investing in rental property. The article, titled “Is Rental Property a Good Investment? (In TODAY’S Market)” can be helpful to readers in discerning many questions about rental property and if it is indeed a good investment.
The new Loan Love guide says: “The goal of investing in rental property is to earn a profit from the rent you charge to tenants. However, depending on the characteristics of the property, the market conditions at the time and the specifics of your situation, investing in rental property may or may not be a lucrative choice. That being said, is rental property a good investment in TODAY’s market? Here are some factors to consider…”
The article then goes on to explain about current market conditions and how they can affect rental property investments. It says: “According to housing market experts, now is one of the best times to invest in a rental property if you have the cash. Housing prices have dropped, making home and apartment purchases much more affordable for investors. In addition, mortgage interest rates are at an all-time low, so it’s possible to make a handsome profit on a rental even if you need to finance it with a mortgage. The rental market is also ripe for investors. Rental rates continue to increase in virtually every major metropolitan area. Coupled with the affordable housing prices and the low cost of borrowing, investors who purchase rental units now are likely to have a healthy earning potential.”
However, even with market conditions being favorable, to all appearances, there are still quite a few things that potential property investors should look into before making the final decision to purchase a property. The article explains that some of the property characteristics that investors will want to take into account include:
“Price - Is the property affordable? Will you buy it outright or finance it with a mortgage?
Renovation required – Does the property need any work before it will be ready for tenants? How much will the work cost and how long will it take you to recover the cost in rent? How will you pay for the renovation?
Maintenance - Will the property require a lot of maintenance? How much will the maintenance costs reduce your profits?
Location - Is the property located in an area with a strong rental market? What is the average rent for a property of that size? How much profit can you earn?
Vacancy issues – Are there a lot of rental vacancies in the area? Will you be able to afford to maintain the property if it remains vacant for an extended period of time?”
The article ends by saying: “Before you make a final decision, do plenty of research. Sit down and look over your options carefully. Estimate how much the investment will cost you and how much you are likely to earn. If you believe the investment will bring in enough money to make it worthwhile, go for it! On the other hand, if you think the purchase is too expensive or the profit isn’t high enough, look for some other ways to invest your money.”
To view the full investment property guide, please visit LoanLove.com.