Investment has long been considered an important incarnation of the American Dream. However, due to the recent economic troubles, this may be changing: a recent study from Bankrate shows that 76% of everyday consumers are hesitant to invest in the stock market, which now seems too complicated and risky. For this reason, people who want to invest are increasingly choosing to spend their money on rental property instead. There are a number of benefits to this choice: for example, rental property provides a steady source of income, and busy investors can easily hire property companies who provide rental management services to handle maintenance, repairs and more. Some current and potential property owners may remember the housing bubble, but experts now say that the market is changing for the better. Read on to learn about what people are predicting for the housing market in 2015, and why current trends should make you consider calling one of your local rental property management companies.
Property Prices Will Increase
This might not seem like a benefit at first, especially if you don’t currently own rental property. However, experts and property companies say that this heralds a beneficial change for the housing market as a whole: for years, they say, American society’s largest demographic has been the Baby Boomer generation, many of whom were already settled and largely had no need for new homes or rental property. Now, the largest demographic is made up of adults in their early 20s, who are looking for places of their own. Experts say that this will increase property prices over the next several years, which will increase the worth of any property you own.
Those 20-Year-Olds Want to Live in the Most Expensive Markets
While some people have speculated that the so-called Millennial generation is ready to begin buying their own homes, other research shows that these potential homeowners want to live in areas that are more expensive and difficult to build in: namely, cities and nearby suburbs. This makes it more likely that people in this age group will rent instead, giving rental property owners a chance to profit.
Mortgages and Other Costs Will Increase
Property companies say they saw the cost of mortgages and property prices increase throughout 2014, and that trend is only expected to continue. While this could be problematic for many people, it also makes it more likely that people will want to rent property to keep their expenses as low as possible and avoid financial difficulties. To do this, they need good housing options, something many areas are unfortunately short of. In this situation, rental property owners could not only benefit from the state of the market, but also provide a necessary, in-demand service.
Investing in property can seem like a frightening decision, especially given the tumultuous past few years. However, experts say that the housing market not only seems to be growing healthier, but also creating potential benefits for rental property owners. If you have rental property or are considering investing, it is time to take advantage of this situation: contact a real estate agent and property management company today to discuss your options. Helpful sites.