Hello friends! It’s the New Year and I wanted to share some tidbits on owning investment properties to kick off 2019! Whether you currently own some rental properties, or are looking into starting, here is some great information on the growing rental market and which investment strategy is right for you!
Rental units are now the fastest-growing segment of the housing market. In the United States, the demand for long-term single-family rentals has risen 30 percent in the past three years. At the same time, the short-term, or vacation, rental market is also booming. The popularity of online marketplaces like Airbnb and HomeAway has helped this market become one of the fastest growing segments in the travel industry. Now, more than ever, there is an abundance of opportunity for real estate investors. But which path is best: leasing your property to a long-term tenant, or renting your property to travelers on a short-term basis?
Long-Term (Traditional) Rental Market:
Create an additional stream of income as your property appreciates in value over time
Short-Term (Vacation) Rental Market:
Help fund a vacation/second home purchase by renting out the property when you’re not using it.
Now Which Investment Strategy is Right for You?
⇨ If your goal is steady, predictable income with less time and effort on property management, then a long-term rental may be the best choice for you.
⇨ If your goal is to purchase a vacation or second home and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you.
⇨ If your goal is to purchase a future retirement home now to hedge against inflation and rising real estate prices and interest rates, then… it depends. You will need to consider factors like location, market demand, and property type.
If you’re looking to purchase an investment property, vacation home, or future retirement home, give us a call! We have many currently listed properties that would make perfect investment properties for anybody ranging from the beginner or experienced rental owner.