Investing in real estate can be a lucrative way to build for your portfolio. But taking the first step toward real estate investing can feel daunting. Experienced investors have developed methods for understanding the market, which helps them make prudent purchases and protect their assets. They know when to hold, when to make improvements, and when to sell a property. But like many other kinds of investments, real estate has its risks. It is hard to predict how home values will fluctuate, being influenced by factors such as location, market demand, and interest rates. Before you begin investing in real estate, Real Property Management in West Haven wants to help you understand how to approach the market in West Haven by evaluating your personal goals and the amount of time you’re willing to commit. Here’s what you need to know to get started.
5 Questions You Need to Ask Yourself Before You Get Started
Here are some important questions you need to ask yourself when you’re starting out on your real estate investment journey. Even if you currently own a rental property or already have an idea about what you want to do, it’s worth it to hear what professionals have to say:
1- Do I have enough for a down payment?
For a clear picture of what you will need financially to purchase a rental property, it is imperative that you contact a mortgage or personal loan professional. They can work with you to evaluate factors such as your credit score, equity positions in other property, available cash reserves, and income to determine if your in a place financially to move into real estate investing.
2- Where should I purchase my investment property?
Once you’ve established that you are financially ready to invest, you’ll need to contact a Realtor who you trust, who has experience in renting, and who has knowledge of the rental property. If you don’t already have a trusted Realtor, you can hire Real Property Management in West Haven to assist you with this process. Some regions have restrictions for renting, so you will want to investigate that before you do proceed. Having the right property in the right location can make or break your investment!
3- Should I have a property inspection completed?
The answer to this should always be YES! Professional inspections are required by many lenders but moreover, it’s really prudent to have the property inspected before purchasing. Always make sure you do your homework before you invest a single dime into any property.
Remember that you will want to continue inspections throughout the time you own it. Real Property Management in West Haven believes these regular inspections are vital to helping you remain informed about the property’s maintenance needs, so you can make needed repairs and keep it in good condition.
4- How do I plan on managing the property and tenants?
This is an investment in your future and if you don’t know the first thing about property management in West Haven, then it’s best to hire professionals. Not only do professional property managers know and understand the process, they also have the tools and resources to make sure that you are operating within the legal guidelines for your area. They can also streamline the process and alleviate the stress of a steep learning curve for new investors.
5- Am I prepared to deal with all associated taxes?
We strongly recommend you get in touch with a trusted CPA. Taxes can be convoluted, and even more so for rental properties. This is an investment that you want to maximize, so be sure to hire a professional and avoid the DIY approach to taxes.
What You Need to Know About the West Haven Market
Now that you’ve taken an inventory of your personal goals and present financial ability to invest in rental property, it’s time to evaluate what the rental market in West Haven is like and what you need to know that will help you make the right decisions.
It’s still a seller’s market.
When considering which property to purchase, you need to be aware that the housing sales in West Haven are still growing. According to Trulia, West Haven market trends indicate an increase of $28,450 (18%) in median home sales over the past year; with the average price per square foot for this same period rose to $139, up from $133. Real Property Management in West Haven knows families are on the hunt for a new place to settle down, and that not every family is in the position to buy. With sales numbers this high in CT, it is an excellent time to purchase investment rental properties.
Inventory is low and prices are up.
For the time being, real estate inventory is low across most markets in Southern Connecticut. Real Property Management foresees this as a temporary advantage for rental property owners. With inventory down at the moment in this seller’s market, home and rental prices have continued to climb. However, that is likely to change as inventory increases. Locking renters in at a slightly higher rate while it is comparable to other market rates is one way to hedge your profits during this time.With proper preparation, rental housing should see few vacancy days.
Millennials and Baby Boomers alike, are still looking to rent.
Even as we climb out of a recession, the belt is still tight for young families looking for mortgage loans. For many of them, buying is not an option yet. Millennials who just graduated college also don’t have the money for a down payment and monthly mortgage payments due to heavy student loan debt. And the trend for Baby Boomers moving toward renting is up as they don’t want to be tied down to mortgages, yard work and replacement costs that come with home ownership. Real Property Management Southern Connecticut understands the market demographics in West Haven and have developed targeted methods for catering to these types of renters, which can help keep your units full.
How Real Property Management in West Haven Helps You Navigate Real Estate Investing
When investors partner with Real Property Management, they have access to the tools they need to grow their investments. With more than 25 years of experience in property management, we’ve streamlined our property management system for new and seasoned investors alike. We can walk you through the entire process, from selecting the right property to filling it with qualified applicants and managing the day-to-day needs of the property so you focus on building your next investment. Call us today and see how we can help you reach reach your personal and financial goals through real estate investing.