Rental Market Still Tightening: Moody’s
“With vacancies declining and rental prices rising, the climate in the housing industry is clearly favorable toward rental properties. According to Moody’s Analytics, “weak income gains, favorable demographics, and the foreclosure crises” are all causing people to choose renting over buying, and demand for rent will remain solid over the next two years.”
The paragraph above is the leading paragraph to the full story you can find here: Rental Market Still Tightening: Moody’s make sure you take a moment to read it.
When I read this article I see it as a clear indicator of where the small investor should be putting his/her money; 2-4 unit multi-family properties. Investors I work with usually have a small portfolio of 2 to 5 rental properties which sets them up for a nice retirement income. If you’re retirement plan includes focusing on residual rental income and you haven’t begun the process, you could very well be in for a shock. Offers on these types of properties are flying around fast and furious causing many small investors much heartache.
If you are an investor looking for 3 or 4 properties to solidify your retirement portfolio make sure that you work with an agent that has local market experience. Make sure that the agent is willing and actually seeks out properties for you. If you and your agent simply wait for new properties to appear in the MLS, consider yourself too late. Getting a solid deal that produces reasonable returns takes work, perserverence and a can-do attitude. The deals are there if you know where to look.
Good luck with your hunt for investment properties! Now is the time to take advantage of a trend that will be with us for the next couple of years minimum.