San Diego, CA (PRWEB) November 15, 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. Recently, the loan advice website posted a guide for those who are interested in buying property as an investment. The article, titled “Is Rental Property a Good Investment? (In TODAY’S Market)” answers some of the most common questions potential investors might have, as well as gives a short list of things that people should look for in an investment property.
The article 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 Loan Love guide then goes on to explain about today’s market conditions and how this affects potential property investors. The article 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.”
This sounds very promising for new investors, however there are a few steps that interested individuals should take before purchasing the first property they see. Not all properties will offer the same earning potential, so it is important to look at the following property characteristics before making a decision:
- Vacancy issues
The article gives a brief explanation of why each of these points is important and ends by saying: “In the end, whether you should purchase rental property depends on the specifics of your situation. Market conditions are excellent for investors, so if you have the capital available, this is the perfect time to make a move. However, if you have limited funds, or if you can’t qualify for an affordable mortgage, investing in a rental may not be a wise choice. 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.”
For more information, please read the full guide at LoanLove.com.