Below we have outlined a few of the most frequently asked questions Ibero hears. We hope this section helps you to further educate yourself in this arena. If you have a specific question for us, please fill out the contact form below and we will write you back as soon as possible. Thank you.
What Makes Real Estate A Good Investment?
One-third of all housing in the US is tenant occupied. Because housing is a basic need, it always in demand. Historically long term rental investments have outperformed traditional investment vehicles such as the stock market, treasury bonds and CDs. Real estate can offer a low entry point and allow your assets to grow rapidly over time making Real estate an excellent investment.
Reasons To Choose Real Estate For Your Next Investment:
- 1/3 of all housing is renter occupied
- Housing is a basic need
- Always in demand
- Low entry point
- Good history of appreciation
- Equity will increase
- Good tax shelter/benefits
- The tenant makes the monthly investment for you!
Investing in rental property is often a major source of primary or secondary income for Owners or investors s that purchase everything from single-family rental homes to large commercial properties. Owning rental property has many benefits, but it also requires investors to put their money at risk. The task of serving as a landlord is also something that’s not for every type of investor. And that’s where Ibero property management is the expert to management your investment and increase revenue .
Where Should I Buy?
Some real estate investors buy rental property based on where they themselves may want to have a vacation home or a retirement home in the future, choosing a location in either a popular resort area or a quiet neighborhood. However, the most successful rental properties are seldom in these types of areas. Tenants often look for access to urban centers via major expressways or public transportation. Rental properties close to points of interest like hospitals, universities and entertainment districts are more likely to attract tenants and can collect higher rents.
How Does Rental Property Make Money?
Rental property allows the owner to benefit in two different ways. The first is by earning a profit from rent. This can only happen once the owner charges enough to cover a mortgage payment on the property as well as its property taxes, maintenance costs and any other included services, such as utilities that tenants don’t pay directly. The second way to make money on investment property is by owning a building that appreciates in value over time. Market trends can push the value up so that when you wish to sell the property, it will provide you with money for retirement or to pursue another investment opportunity.
How Long Until I Make a Profit?
Owning rental property is a long-term investment that, as a rule of thumb, pays off after the first three years or more. Short-term property investments are subject to unpredictable market forces, which can make it hard to guarantee any kind of profit. In addition, the high up-front costs of renovating a property and marketing it to prospective tenants can take time to recoup. Besides income from rent, it often takes time for housing prices to rise along with inflation, so owners must enter into this type of purchase with the knowledge that it will be a long-term investment.
Ibero Property Management is committed to assisting investors regarding the acquisition and reorganization of their investments. Click here to download the Property Owner’s Handbook. For more information call a property specialist at 561-420-0640.