The housing market crash of 2008 may have led some people to hesitate about placing their money in real estate. However, with the millennial generation more likely to rent than buy, real estate investors can see big returns in the current market. Home prices are remaining steady, interest rates on mortgage rates are near record lows and rental prices are steadily rising in many areas. All of this means investors can see profits from capital appreciation and rental income when they choose to invest in the real estate market. Other reasons to invest in rental properties include:
It’s Relatively Easy
Unlike stocks, bonds or other investment options, rental properties don’t require a lot of industry knowledge in order to invest successfully. Finding a rental property to invest in can be done with very little research and pretty much all of it can be done for free online. Knowing your budget and having a general geographic location in mind is all you need to get started. Once you have those pieces of information, your real estate agent can help you find the property that best fits your needs.
Less Risk than Other Investment Options
Investing in the stock market typically requires outside expertise in order to manage your money wisely. With fluctuation in the market driving your returns, the value of your investment is subject to change you can’t control. However, rental properties allow you to have complete influence over your investment. Once you close on the property, all you have to do is maintain your payments which can be done by charging rent that adequately covers your investment. This is a benefit that cannot be accomplished with the stock market.
Rental Property = Value
With rental properties currently in high demand, it’s a logical place for investors to place their funds. Not only can the property bring you great returns, but you can also directly manage the worth of your property by making improvements that add value. Making these improvements leads to increases in rent prices which means more profit.
Interested in investing in real estate but worried about managing your rental properties? You don’t have to face it alone! At McNaughton Real Estate, we offer rental management services to help you get all the benefits of owning a rental property without the stress of finding tenants, collecting rent and performing other aspects of property management. For more information about managing your rental property in Northwest Arkansas, please contact McNaughton Real Estate or visit http://www.nwaleaseyourhome.com/.