Blog posted On May 12, 2020
When you invest in real estate you either buy to sell or buy to rent. Investors who buy to sell will buy a home for a lower price, renovate or improve it to add value, and sell for a profit. Investors who buy to rent, rent the home to a tenant and earn a profit over time. Real estate investment is often considered a more stable investment than the stock market because homes and property tend to appreciate in most market conditions. Single-family rental homes particularly have become a popular investment, so much so that some housing developments are being built exclusively for renters.
Are you considering a real estate investment? The Forbes Real Estate Council identified these three reasons to invest in a single-family rental home.
Cater to the Millennial Market
Millennials aged 24-39-years-old have reached the age when people traditionally establish households and buy a home, yet they are facing an uphill battle with homeownership. Historically high student loan debt makes saving for a down payment difficult, yet young families are starting to outgrow apartment living.
Many Millennials who are ready to branch out on their own but aren’t able to save for a down payment are turning to single-family rental homes. Young couples and families make great stable renters because they will typically stay in the home longer and pay on time, giving you the opportunity to earn a passive income for many years.
Easier to Sell
When you’re ready to sell, your single-family rental home will be easier to sell than a multifamily home or a large apartment building. When you’re selling your single-family rental home, you’ll have a wider pool of potential buyers including owner-occupants or other property investors.
If you’re considering buying an investment home, let us know. A single-family rental home could be a great opportunity to earn extra income and build equity, especially in today’s market.