If you are looking to invest in real estate, now might be the time to do so. Interest rates are the lowest they’ve been in years, making it a very attractive time to buy.
Currently, 15-year-fixed mortgages are under 4 percent and 30-year-fixed are just slightly above. The last time this country has seen rates this low was in the early 1950s, so if you’re considering buying a home for yourself or a rental property, these low interest rates may make it possible.
As every investor knows, low interest rates translate into lower payments, and lower payments are greatly beneficial. Obviously, they require less of a financial commitment from you. With lower loan payments, you don’t tie up as much of your monthly income as you would with higher payments. If you’re buying rental property, you can pass your savings along to your tenants, which may be necessary during the current economic downturn. On the other hand, you could opt to charge a higher rent and use the excess money for other investments or to pay off your low-interest rate loan more quickly.
Depending on the property’s location, offering a low or very reasonable rent may or may not be necessary. Areas of the country that have remained relatively untouched by the downturn in the housing market may require no decrease in rent while it may be very beneficial in more affected areas. A lower rent may attract more tenants, giving you a variety of potential renters from which to choose.
If you are unsure of how to best gain from low interest rates, experts in property management can help you. If you are unsure how much rent to charge, they can offer advice and information to help you set rental rates that will benefit you and ensure you thrive economically as you lease your properties.