San Diego, CA (PRWEB) November 10, 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 very helpful for those who are considering purchasing a rental property as an investment.
The article states: “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, just because the market environment makes it seem like a great idea to invest in a rental property, there are still a few other things to consider. The article continues, saying:
“Even though the market is in a good place for investors, not every rental property offers the same earning potential. For example, properties located in low-income areas may not be able to bring in as much rent as a similar property located in an area with a higher average income.” Loan Love suggests that potential investors consider the following property characteristics before committing to a purchase:
- Renovation required
- Vacancy issues
The article briefly explains each of the above points and why they should definitely not be overlooked. As a final note, Loan Love says:
“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 visit LoanLove.com for the full investment property guide.