While we all remember the housing crash a few years ago, reports coming in are projecting that things are generally on an upswing now and we're tasting recovery. And as I have shared before, I think that the state of the rental market in the Cape Fear region and Wilmington is especially strong.
In fact, according to Business Insider, the housing markets in Raleigh and Charlotte are making the list as ones with some of the biggest gains this year. This means that if you want to invest in property, you need do it before sales prices go too high.
Of course, buyers should never spend more than they can afford. People who are seeking to buy houses, whether for their primary residence or a secondary property, should know their true budgets going in to the purchasing process. The best place to start is an honest talk with a financial adviser to grasp how much can be comfortably spent on an investment property.
After that, the next biggest thing to consider is the area, even down to the specific neighborhood desired. Remember: Location matters! Highly sought-after locations will have higher sales prices, but they can also be some of the easiest properties to rent. When planning to buy an income property, buyers should not only consider their actual cash investments but also the amount of money they can anticipate a property will rent for.
A mortgage should be reasonably covered by a renter. This means that there must be thorough research on how much rent similar properties in the neighborhood are getting. An owner cannot expect to ask a per monthly fee that is significantly more than what is charged for a property down the street simply because he or she purchased a home at a higher price and has a higher mortgage payment. A renter is looking for a well-kept property that will be home for his or her family, at a price that is market supported. Before purchasing, know what rent can be expected on the property.
Don’t wait too long to purchase that perfect property, of course. Although house prices are not swelling at astronomical numbers, they are going up in key locations. In parts of the Cape Fear region, particularly in our beach towns, there is limited inventory due to the water and marshlands, which means very limited new development in some places. Existing properties will only go up in price as more people look to invest and relocate to the beach. This is not something that is anticipated to decline.
If you are considering purchasing an investment property and want to do it before those purchasing prices get too high, contact us at Sweyer Property Management and we’ll be glad to share our years of experience and advice.
Sweyer Property Management has been providing real estate property management services and long-term rentals to the Wilmington area since 1987. The company continues to be the industry leader with more than 1400+ units and more than 20 employees. Sweyer Property Management has exhibited continuous growth throughout the Wilmington, Leland and Hampstead areas while maintaining a 4.8 Google+ rating for customer service. To inquire about the company’s full-service management services, or to take a tour of houses for rent in the area, email [email protected], visit us online at WilmingtonForRent.com or download our mobile app, Sweyer Rentals. You can also Like and follow the Sweyer Property Management Facebook page to get property management tips or see properties for rent.
Jenny Callison - Feb 26, 2021
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