More people choosing to rent
GOOD NEWS FOR FRESNO REAL ESTATE INVESTORS
Realtor Magazine is reporting on a new study out from the National Apartment Association that states 76% of people surveyed say they would prefer to rent a home than buy one in today’s real estate market.
Three out of four people would rather rent a home, possibly your Fresno rental property, than buy a property of their own to live in. That’s amazing news if you own Fresno rental properties today.
MORE GOOD NEWS
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The 76% figure is up 5% from the 2009 survey results. More people would rather rent a property and pay your mortgage for you than last year at this time.
HOW LONG WILL THIS LAST?
If you have been thinking of purchasing a Fresno rental property there are plenty of reasons to back up your decision.
- Adding an investment property to the asset side of your balance sheet might be a great move to diversify outside of the traditional stocks, bonds, and mutual funds that you might currently be heavily weighted in.
- Fresno real estate prices have declined across the country in the past few years and you might be buying into an asset class during a dip – remember, buy low and sell high? Same rule applies to real estate.
- Interest rates are near record lows. If you don’t have the cash liquid to buy the entire property yourself, borrowing money won’t cost you much when compared to historical interest rate levels.
THE TREND IS YOUR FRIEND WITH FRESNO REAL ESTATE
The same survey I mentioned above also states that 60% of current renters say they have no interest to change their current rental plans and will continue renting in 2011. Screen your renters well now, and you may have a steady stream of nice income for 2010 and 2011.
Only 12% of those surveyed plan on buying a home within the next 12 months. Now that the first-time home buyer tax credit is expiring, if your renters didn’t get into a home then they might just be your renters for months to come.
WHY RENTERS ARE HAPPY RENTING
Some 64% of renters that were surveyed reported that having no responsibility for major repairs or maintenance was the primary reason they prefer to rent instead of own their own home. You take away the responsibility for the repairs and maintenance from your renters and charge them a premium for that worry-free luxury.
The real estate market dip also has many Americans scared of owning property. The study reported that 33% did not like being impacted by an unpredictable real estate market or susceptible to foreclosure as a reason they prefer to rent vs. own.
By owning the property and renting it, you have taken away a major life fear from those who have been shocked by the last few years. Comfort breeds loyalty and this loyalty will be what pays your mortgage loan and then some.
The reasons for adding an investment property to your balance sheet are numerous and this study adds more.
To discuss adding a Fresno investment property to your portfolio, contact Fresno Realtor, Joseph Hollak at Keller Williams Realty Fresno.
Joseph has worked with investors all of his professional life and can help you with adding an investment property to your balance sheet.
Joseph can be reached at (559) 399-0006.
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