Is It a Good Time to Buy Investment Properties?

Is It a Good Time to Buy Investment Properties?

Is It a Good Time to Buy Investment Properties? - Article Banner

With the real estate market in Atlanta and around the country so strong, there are a lot of people who think it’s better to wait for a crash or a downturn before they buy. 

That’s a bad idea. 

This is an excellent time to buy investment properties. You don’t want to wait for a weak market or higher interest rates or a less vibrant economy when lenders are less generous with funds. 

Here is how you know it’s a good time to buy an investment property, whether it’s your first one or the latest addition to a growing portfolio.

Mortgage Rates Invite Investments 

Mortgage rates are still very low, and you don’t have to worry about losing money on high interest payments or unreasonable payback terms. Depending on your own credit history and financial strength, you can find a traditional mortgage that doesn’t cost a lot. If you already own investment properties, you can also leverage what’s in your portfolio to position yourself for better terms. 

Such low rates make it attractive to purchase an investment property now. The Fed has signaled that rates will stay low through the end of 2022. But slowly, the interest rates will begin creeping back up. Don’t wait until borrowing becomes unaffordable. 

Higher Atlanta Rents Invite Cash Flow

Rental values in Atlanta have gone up considerably in the last year or two. In fact, the rents in Atlanta are climbing at a faster pace than most other markets around the country. That positions you well as a landlord. You’ll be collecting more every month if you invest now. 

If you wait to buy a rental property when the market cools, you will find that rents might have stabilized, and you won’t be able to leverage the rising rental values that currently exist. 

Buy an investment that has good cash flow. Then, your capital appreciation is an extra bonus. Buy an investment property now, and it will almost certainly pay for itself. Then you can hold it as long as you’re able to continue earning monthly income.  

It’s a challenge to find positive cash flow in a market that’s stagnant. Invest now, and you can be sure you’re going to get the highest possible rents, and you’ll be comfortable raising those rents at the end of the initial lease term.

Atlanta’s Rental Market is Hot

Rental MarketOne excellent reason to invest in the Atlanta rental market right now is the strength of the local economy. The city and its surrounding communities has become a central location for large businesses, small start-ups, education, sports teams, healthcare, and lots of other industries. There are more than enough jobs for people who want them, and the population is growing. 

This contributes to a strong tenant pool and an active rental market.  

The opportunities for growth are continuing to present themselves. With steady job growth and a stable market, investors know that investing in rental property is safe.

Atlanta also provides a lot of diversity in the rental market. Investors can purchase single-family homes, townhomes, condos, and new construction properties in gated developments. 

If you’re thinking about investing in an Atlanta property, please reach out to us at Property Services of Atlanta. We’d be happy to tell you more about the current market and discuss what might work best for you.