Property and real estate investment has long been seen as one of the safest investment opportunities around. However, it’s a big area, and there’s many options, and with so many options, the chance of making a mistake grows. One option, the single family home, is one of the better choices when it comes to property investments.
1. Hybrid Investments
One reason property makes for a good investment is the constant amount of demand. With so much demand, finding a valuable property can see healthy returns for years to come. In the property investment market, you will need to search for a great house as they are in demand. The property’s value isn’t necessarily impacted by the rental income, which means a house has a good chance of holding value, even in a poor rental market.
The situation gets slightly different when we talk about apartments whose value can increase or decrease with the net rental income that it generates. A house that is in a good neighbourhood and has been well maintained and preserved will hold its value, not because of the rental income but because of the qualities it possesses.
2. Safety
Houses are pretty stable on the real estate market, and they typically keep the value they have. The number of people interested in buying a housing unit is more significant compared to the number of people interested in other types of property. This influences the number of vacancies. The number is lower due to the high demand for this type of housing compared to the commercial varieties of property.
3. Homeowners as Sellers
When purchasing a house, most often you will be buying directly from a homeowner who might be selling the home for a variety of reasons. On the other hand, an investor selling one of their assets, is solely looking to make a profit from the sale, which is sure to drive the price up.
Professional investors are better negotiators and with experience, they might pressure you into a deal that isn’t in your best interest.
While there’s no need to avoid buying from other investors, considering the implications is important. Either way, know what your standpoints and requirements are and how far you want to go.
4. A great number of Deals
Nowadays people are on the constant move to find a better job, to start all over from the beginning in another city, they get married, divorced, retired, so there are constant movements and shifts in this market. There’s a huge variety of opportunities on real estate marketplaces such as Roofstock. The source of potential deals is enormous and abundant as the number of single-sized houses in a typical town is much bigger compared to other types of properties.
5. Tenants that pay the rent on time
When talking about a decent single-sized family house in a beautiful residential neighbourhood, we usually indirectly talk about self-sufficient, well-financed tenants. Why? Because they can afford this lifestyle, take care of the property with due diligence, and pay the rental fee regularly and timely. It means less hassle for you, more free time regarding the management of the housing, and more added value to rental income.
6. Diversification of the Funds
Diversification is crucial and worth considering as a principle when investing in property. What this means is that you should not invest all your money in one thing which may not be as successful as you expected but rather allocate the funds across a few deals. The investment in single-family houses can be a real example of dividing the funds.
Rather than buying one multi unit building in one location, you can benefit more and feel more financially secure if you take the same sum of money and invest it in several stand-alone houses located in different neighbourhoods.
7. Get Cash if you decide to sell
One of the strengths of investing in stand-alone housing is that compared to other types of properties such as mobile housing, commercial buildings, and bigger houses is that with this investment you can get cash and a retail price when the property is being sold.
The policy of the federal government is that people should be able to purchase their own house. As a result, many available loan products offer vested interest in the long- term, so when these houses are sold, they can pay in all cash. This might not be the case with the other types of properties where getting money is more complicated.
The Bottom Line
The real estate property market is truly remarkable as it offers an abundant number of possibilities for making a profit and what is even more inspiring is that you can do this in your way as there are many successful ones.
What is more is that the market offers a place for different types of investors who are interested in various properties such as commercial property buildings, mobile homes, or multi unit buildings. There are pros and cons to every kind of investment property, and you surely have to do much research to familiarize yourself with these and make a knowledgeable decision taking into account all the crucial factors.
If you are interested in single-size family houses, make sure you check roofstock.com. They offer excellent options for investment for the first time, investors, as well as the more experienced ones. With their assistance, you can also purchase whole or fractional ownership shares, among other possibilities for investments.
