Have you ever thought about buying a home as an investment property? Buying a home and renting it out can be a great way to increase your income and gain financial freedom. Renting out a home can give you access to passive income, help you build a retirement fund, diversify your investment portfolio, and build equity fast.
If you’ve been thinking about purchasing an investment property, but have been waiting for the right time, 2022 might be your year! Here’s why 2022 is a great year for buying your first rental home.
Why Invest in Real Estate?
Before we dive in, let’s talk about why investing in real estate is a good idea in general. Real estate is generally considered to be one of the safest investments one can make. It’s rare for property owners to see their investment lose value. This type of asset appreciates naturally, and you can also force appreciation in different ways like renovating the property and increasing the rent. Real estate investments can provide:
- Steady cash flow
- Tax benefits
- Good returns
- Financial stability
- Opportunities to build wealth
Reasons to Buy Your First Rental Home in 2022
If you’re thinking about buying your first rental home, 2022 is a great year to do it. Here are a few reasons why:
- The cost of rent is rising. Right now, there’s a very limited supply of homes available for renters. This has driven up the cost of rent. Investors have a major opportunity to build equity and increase profits.
- Mortgage rates are low. In 2020, mortgage rates hit an all-time low. While they’re steadily on the rise, they’re still considered relatively low. Now is a good time to take advantage of today’s low-interest rates.
- Short-term rentals are gaining popularity. Short-term rentals like Airbnb are gaining popularity. If you’re unsure about renting out to a long-term tenant, you could always opt for short-term rental instead.
- More people are moving to the suburbs. The coronavirus and ability to work from home has caused many people to abandon city life. As more people move to the suburbs and out of apartments, demand for single-family rental homes is increasing.
- Vacancy rates for rentals are at an all-time low. That means, chances are, you probably won’t have any trouble securing a renter. Vacancy rates for rentals are lower than they have been for the past 25 years.
Speak to a Mortgage Expert Today
Ready to begin the process of buying your first rental home? Let us help. Call our office today to get in touch with one of our mortgage experts.
