San Diego, CA (PRWEB) November 13, 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. Borrowers can safely find and secure the loan they need without constraint with the help of Loan Love’s many advice articles and videos. Recently, the loan advice website has published a new article going over the essentials when investing in a property. The article, titled “Is Rental Property a Good Investment? (In TODAY’S Market)” is aimed at helping those interested in investing by answering a few questions and providing investment property tips.
The article explains: “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?”
Loan Love goes on to talk about the current state of the real estate market and how this would affect those who invest in properties. 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, the article also explains that even though the market is in a good place for investors, this does not mean that every rental property is necessarily a good investment or will offer the same earning potential. Properties located in low-income areas, for example, might not be able to bring in as much rent money as a property of similar size and type in a more high-income neighborhood. When deciding on what property to invest in, individuals are advised to look at the following property characteristics:
- “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’s last piece of advice for investors is: “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.