Is Now the Right Time to Enter Real Estate as an Investor?
10.01.2024 | Category: Article
As investor activity in the residential real estate market picks up, many are asking if now is the time to jump in. With the latest reports showing a significant increase in investor purchases, debunking claims of a slowdown, there’s growing confidence that the market presents opportunities for those ready to invest. But how can you be sure it’s the right move for you?
Why the Market is Looking Up for Investors
Investor purchases saw a 3.4% year-over-year increase in the second quarter of 2024, marking the biggest jump in two years. With homeownership of reach for many due to rising mortgage rates and home prices, demand for rental properties is surging. Investors are in a prime position to take advantage of this, especially those who can pay in cash or secure competitive financing.
While the overall real estate market has been unpredictable, savvy investors have the potential to thrive by focusing on rental properties and areas with robust demand. The opportunity to generate income from rent, combined with long-term appreciation, makes residential real estate an appealing option for those considering entering the investment space.
How Mutual of Omaha Mortgage Can Help You Succeed
If you're thinking about investing in real estate, Mutual of Omaha Mortgage offers the guidance and tools you need to make informed decisions. Whether you're a seasoned investor or just starting out, our team can provide financing options tailored to your investment goals.
1. Assess Your Financing Options Early
If you're not paying cash for your investment property, securing the right financing is an important first step. Talk to a mortgage advisor early on to understand your loan options. Mutual of Omaha Mortgage offers a variety of investment property loans that can align with your financial goals. Knowing your budget ahead of time helps you make confident offers.
2. Start Small, Build Gradually
For first-time investors, it’s wise to start with smaller, more manageable properties, like single-family homes or duplexes. This allows you to get a feel for the process without overextending yourself financially. As you build equity, you can use it to expand your portfolio.
3. Research High-Demand Rental Markets
With homeownership becoming more difficult for many, rental demand is on the rise in many markets. Look for areas where rental properties are in demand, ensuring you have a steady stream of tenants and reliable income. Consider factors like employment rates, school districts, and local amenities when evaluating potential investments.
4. Factor in Extra Costs
Beyond the mortgage, don’t forget to budget for property maintenance, taxes, insurance, and vacancies. Having a financial buffer ensures you're prepared for unexpected expenses, allowing your investment to remain profitable in the long run.
5. Work with a Trusted Team
Navigating the real estate market is easier when you have a team of experts by your side. From real estate agents to mortgage specialists like those at Mutual of Omaha Mortgage, having knowledgeable professionals on your team can help you identify the best investment opportunities and secure the right financing to meet your goals.
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