Real Estate as an investment, and owning rental homes are a good investment! For any and all residents of Cape Cod, this investment has produced results in short-term as well as in the long-term. If done correctly, with the guidance of a leading Cape Cod property management service such as Real Property Management Associates, it can become a constant source of passive income and/or revenue.
Real Estate Investment vs 401k
Since the Real Estate bust in 2008, holding a property/home has had a great return. In the following years, we have seen home values increase by a good 9%. This is better than the average IRA. The Average 401k is generally expected to be between 5 to 8%. Therefore, owning an investment house is as good or even better than that of a 401k stock fund portfolio.
Gain on Your Single/Multi Family Homes
Many homeowners are now realizing this that with the help of renowned companies that offer property management in Middleborough MA as well as other cities such as Weymouth, Taunton, etc., they can have a good increase in their annual revenue. Homeowners are now keeping their single family and multi-family homes when the jobs take them to a different state or out of the country. There are two main ways a homeowner is increasing their net worth; rental income, and, home value appreciation. A $400,000 home renting out at $2200/mo should clear about $5,000/yr after expenses. Add that to the $36k in home appreciation and you have over a 10% gain. Have a property manager manage the expenses.
Where Can You Earn the Most Profit?
The abovementioned returns will obviously vary from market to market. However, surprisingly, the rate of return is better outside the big cities. This may be due to several reasons. Consider hiring a competent company that offers the service of property management in Taunton MA or in whichever area you’re located in Cape Cod. The managers will take care of your property for you. Simply put, you will have all the benefits of renting out your space without any of the hassles that entail, such as regular maintenance, rent collection, eviction, etc.
At the Turn of the Millennial Tide
Another tread that is beneficial to the investor is the trend that the millennials would rather rent than own. Home ownership has decreased from 70% to 64% over the past 10 years. The millennial lifestyle coupled with the fast-paced living of the digital age makes them move from place to place, wherever the job takes them. Hence, instead of settling down roots to any one city, they prefer renting out space in whichever city offers them the best job and life opportunities.
In Conclusion
Summarizing, if you are an investor, consider investing in residential single or multi-family homes to diversify. A good property manager will minimize costs, maximize income and preserve the asset. For more information, contact us or call us at 508-509-4485.