If so, this may be the perfect time for you to jump onto the investment property bandwagon. Over recent years, as the housing market worked to rebuild itself, mortgage rates hit all-time lows. As a result, many properties around San Diego went from being the owners’ primary residences to their very own Downtown San Diego rental properties. Now, as the rates start to climb and the economy enters full-blown recovery, you’re losing your chance to get great rates to accompany rental properties.
But, that doesn’t mean that you’re completely out of time. If you’ve been considering putting your money into an investment property, it’s time to seriously put a plan into place. You might be a homeowner that’s looking to move up or move out, or maybe you have a little extra money set aside that is ready to start making more money for you. In either case, renting out your property in San Diego can yield big results for you.
Depending on the rates that you’re able to negotiate, you may be able to charge a good amount more from your tenants in the long run than you would otherwise be able to attain from the sale of your property. According to U-T San Diego, a recent poll indicated that 31% of current homeowners that are shopping for a new home in the San Diego area are seriously considering renting out their existing home, rather than selling it. In a fixed-rate mortgage, the monthly payment will not be on the rise; however, as reported by U-T San Diego, the rental rate in March alone rose 4.4% from the year prior.
You may be able to hang onto a rental property for several years and see a substantial rate of return. Keep in mind, however, that being a landlord may sound better than the situation actually occurs in real life. It can be a tough job, particularly if you’re an out-of-town landlord. Landlords, particularly those giving it a go for the first time, should be encouraged to consider hiring a property management firm to assist with the unexpected repairs, complaints, and incidences that can occur when someone is leasing your valuable property.
There are pluses and minuses to renting out your property. Whether you’re looking to buy or sell, I can help! I know the San Diego real estate market very well, and I am experienced in buying and selling condos, single-family homes, co-ops, and townhomes. If you’re unsure about what your next move should be in the real estate world, email or call me, Michael Long, and let’s talk about your options!