An Investment Property Should Be Your Primary Real Estate Purchase

Not quite ready to purchase a home for yourself but keen on capitalizing on the current favorable market conditions? Perhaps you’re earning a substantial income that’s ripe for investment opportunities.

In that case, consider venturing into the world of investment properties. This trend is gaining momentum in real estate, driven primarily by historically low and occasionally astonishing interest rates. Savvy investors are increasingly drawn to the prospect of placing their money in appreciating assets.

Here are the top five compelling reasons to contemplate buying an investment property in today’s dynamic real estate markets:

1st – Interest Rates

interest rates translate to more accessible lending options, enabling you to get more value for your investment when you opt for higher-value properties.

2nd – The Promise of Appreciation

As per CoreLogic, ‘The overall home price index (HPI) has shown a year-over-year increase every month for seven consecutive years.’ The enduring price appreciation in real estate makes it one of the most secure investments available.

3rd – The Appeal of Passive Income

While long-term appreciation is enticing, the real secret to success with investment properties lies in generating passive income.

4th – Exploring Short-Term Rentals

The short-term rental market has ushered in a realm of opportunities for investors. By choosing the right location, whether it’s by the beach, near a ski resort, or in proximity to popular annual events like Coachella, you can potentially yield substantial returns in a short timeframe. However, it’s crucial to remain aware of local regulations, as many cities have recently tightened restrictions on platforms like Airbnb.

5th – Building a Path to Your Dream Home

Purchasing an investment property before acquiring your primary residence doesn’t preclude the possibility of buying your dream home in the future.