Less Competition: There are less people in the market so you almost stand out as someone who could be a real buyer. Realtors are ready and willing to take time with you. You are not just one investor in a crowd of many investors. Realtors need to make that commission and with few buyers they have a lot less commissions and less money in their pocket.
If you are not an expert in such things there are ways to get to be an expert. You can team up with an expert, get training from experts, and get advice from others who are part of the process. They include realtors, bankers, joint venture capitalists, appraisers, and even government offices in your area.
The value of income properties is based on the income. It is a function of the net operating income and you can create value by increasing the rents and lowering the expenses. You will then understand how to best make use of your money and time.
Allow kids – Many landlords do allow kids in their properties, but at the same time one would not believe how many don’t. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.
On the other hand – this is what people consider a buyer’s market. The prices of homes are more affordable than than they were a year ago. Interest rates have fallen, and because less people are buying there are more homes to choose from. The concern is that it will take too long for the market to see an up-swing; and that real estate investors will lose money while they wait for the market to head back uphill.
Property investors are also offered great tax benefits. All expenses for the house are tax deductible. Furthermore, if you are unable to get a tenant and your house was bought on loan, meaning you have to make mortgage payments, your property will not be taxed for that year. Moreover, if the value o maintenance and repairs exceed the amount the property is bringing in, then you are also exempt from paying taxes for that year.
The first advantage with property investing is that they are easy to run. In the beginning, it may be a bit hectic, as you will have to look for a great house that is in a demanding market. If you are building from scratch, it will be even more tedious as you will have to deal with contractors and make sure that things are moving well. Once you actually have the building, you will also have to look for tenants. However, once you’ve done all this, the rest is easy. In fact, you can opt to get a property manager to take care of any real estate you may own. This will relieve any pressure from, as you will only have to go pick up your checks.
Apartments equal cash flow even with nothing down, meaning there is one roof with maybe 20 apartments underneath it as opposed to one house with one roof. Houses are made for homeowners to buy and sell. Houses can be changed into rental properties but apartments are designed to be income-producing properties.