Home loan interest rates are still at all-time lows, while home prices are steadily creeping higher, and even leaping skyward. Buyers are lining up to purchase properties, making the current market pretty sweet for sellers.
Nevertheless, a trend is currently surging that’s putting a slight damper on sales: rental demands are growing. This preference for renting is expected to continue and increase for the foreseeable future.
Viewed with the right perspective, this trend could serve as a homeowner’s ticket to a reliable investment.
Growing Rental Demand
Selling vs. Renting Out Your Property. A combination of factors is driving this trend. Empty nesters are trading in expansive houses with unused rooms for smaller homes that require less upkeep. Rather than sink profits from home sales into new purchases, they’re renting modest properties instead, earmarking financial windfalls for travel and other lifestyle luxuries.
At the other end of the spectrum, millennials and young families are finding it increasingly difficult to come up with down payments. Many of those who have accrued sufficient funds to cover a down are directing those monies toward private schools or other priorities, and opting instead for rental dwellings.
Leverage the Trend
Consider leasing out your property, rather than selling it. Like home sale prices, rental prices are also rising due to demand. Ask your real estate agent for a comparative market analysis on the potential rental value of your home to determine a fair market price for your neighborhood. Rental income could potentially cover your current monthly mortgage payment, and then some. Listing the lease through your real estate agent improves the screening process, leading to a vetted tenant match for your home, and a reliable income stream for your bank account.
Keep your house while enjoying a steady income stream. Capitalize on current trends by lassoing a lease on your property.
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