A recent article by Realtor Magazine highlights some excellent reasons why it’s time to consider adding rental properties to your investment portfolio. Author Kevin Ortner has done an excellent job curating numerous sources to give us some great reasons why it’s time to get off the sidelines start investing in rental real estate.
Ortner discusses how fewer people are buying homes, noting an article by the Urban Institute which says nearly two-thirds of the households that are formed between the years 2010 and 2030 are expected to be in rental housing. Goes on to discuss the dip in home ownership among younger generations is likely “a permanent shift.”.
Ortner cites several indicators showing the rental market is booming including:
- 36.4 percent of U.S. households were in rental housing in 2015 — the largest share since the late-1960s
- Demand for single-family rental housing is particularly high. The single-family sector has traditionally housed about 30 percent of the nation’s renters, but today, its share of the market now stands at 35 percent, or 14.8 million households.
- Rents increased 3.6 percent in 2015, according to the Joint Center for Housing Studies’ Consumer Price Index.
- Over the last 10 years, average rents in the top 50 markets have risen 22.3 percent.
- Vacancies are low, dropping to just 7.1 percent in 2015 — its lowest point since the mid-1980s.
What is essential when finding good investment real estate is using a real estate agent who knows this niche market. You need an agent who can spot the best deals that will offer a better rate of return, and help you steer clear of overpriced properties. Compass Realty Services is Grand Rapids’ leading multi-family real estate broker with the most transactions in multi-family housing back to back 2015 and 2016. We know our stuff.
Real estate investing is a great way to build wealth, as explained in Entrepreneur’s article, “4 Powerful Ways Real Estate Can Make You a Millionaire.” Author Brandon Turner describes how cash flow, appreciation, loan pay-down, and tax benefits are crucial factors that assist in building net worth. Don’t forget, the true key to making money in real estate is location, location, location. Working with an experienced real estate agent who knows the local rental market is an important foundation to starting down the path of real estate investing. Thanks in part to their relationship with Compass Property Management, our real estate investing team has far more experience than other agents who deal primarily with private residences. Furthermore, many of Compass Realty Service’s agents are landlords themselves. All of this combines to make Grand Rapids the ideal spot for real estate investing, and Compass Realty Services the perfect broker to help you maximize your investment.
If you are interested in taking the jump into real estate investing, contact Compass Realty Services today!