Is now the time to purchase an investment property?
Mortgage rates dropped to record lows in 2020, leaving many people asking is now is the time to purchase an investment property? There are many upsides to investing in real estate now, and to better answer this question, we need to take a deep dive into these factors.
Question: What do low interest rates mean for an investment in real estate?
Answer: Lower interest rates translate to lower monthly payments on your loan, meaning more money in your pocket! Since interest rates hit rock bottom in 2020, they have only one way to go from here—up. Now is an ideal time to take advantage of historically low interest rates and snag an investment property.
Question: Is it difficult to get a loan for an investment property?
Answer: Lenders consider investment properties to be high risk. Thus, investment property loans are oftentimes more difficult to qualify for. While you may have been on the lookout for a good mortgage lender, you should look no further than your real estate agent for advice. Partnering with well-experienced agents, like those at Wisdom Real Estate, gives you full access to their contacts list. We partner with lender experts like RJ at Fairway Mortgage because we know how hard they are willing to work to make your loan happen.
Question: Is paying all cash for an investment property a good move?
Answer: Paying all cash for an investment property means that you own the property outright, and this has several obvious advantages. No mortgage means no interest payments, translating to less money paid out in the long-run. Further, all-cash offers close faster because there’s no lender dictating the closing process. But just because you are skipping out on a lender, that doesn’t mean you should avoid working with a real estate agent as well. Agents are experts in the local housing market and are invaluable during negotiations. And keep in mind, the seller pays your agents commission, so there’s no reason not to seek out the expertise of an agent.
Question: Is the market too competitive right now?
Answer: With low supply and high demand, investing in real estate now has become highly competitive. But don’t let that deter you! Entering a competitive real estate market only means that there are many deals to be had. Partnering with the right real estate agent will ensure that you get the best deal possible. Our experts and Wisdom Real Estate have in-depth knowledge of the local market, which is beneficial in the ongoing competitive bidding process. Don’t let the fear of competition get in the way of securing your financial future!
Ready to purchase an investment property? Look no further than a Wisdom Real Estate agent for advice. Let us help you get started on your path to financial independence!