With Home and Rent Prices going up. here are a few things to consider.
As you can see inflation typically causes interest rates to go up. Secure your loan ASAP to stabilize your budget.
If you are a renter,
you could find yourself being put out at the end of your lease. Landlords are both selling rental properties and renovating to maximize what they can get for rent. Leaving you with no choice but to pay $300 – $800 more in monthly rent. would you like it better if your payment was the same for 30 years.
If you are a homeowner,
And Pay less than $1700.00 per. Mo. to your mortgage company. Your home most likely would make a great rental.
Your now thinking where would you live. The first step would be to buy an upgraded home to live in. Don’t wait start before rates and prices go through the roof.
Why would you want to invest in another property?
You may have noticed the prices of everything have gone up considerably rent and home prices Included. Rental Property with positive cash flow both bridges the inflation gap and grows your retirement portfolio.
The #1 Question People Ask – Is This A Bubble?
The answer is no. We are now dealing with cost of building materials and other cost factors.
In other words inflation is the cause, not bad loans.
Everything has gone up a lot and may come down a little. However the thing to watch is interest rate. A home may look more expensive. 2x4s and cabinets cost more. This means new or remodeled homes have to cost more. Lower interest rates increase buying power. Keep in mind the mortgage on the rental property is paid by the tenant.
It is like having two credit cards but someone else pays the bill on one of them, as well as a few hundred extra toward card or house two.