Connecting You To Better Living®
The housing market is a bit of a mess right now. We’ve gotten used to this mixed-up reality where both mortgage rates and housing prices are sky-high. Theoretically, mortgage rates as high as 8% should dig into the value of homes (as purchasing power decreases) and prices should come down. But they haven’t.
Yes, it’s true, for the most part…housing prices are still very high across the country. If you’re a potential seller, this sounds good. You’ve seen others cashing in over the last couple years and although interest rates have spiked in an effort to slow the market, prices are still up 3% (on average) from a year ago.
By most metrics, the U.S. economy has proven much more resilient (so far) in the post-Covid era. Inflation has spiked around the developed world and the Federal Reserve has aggressively increased interest rates, much to the chagrin of real estate investors.
For most people, their first experience with mortgage underwriting is when they initially buy their primary residence, which more often than not, is a single-family home. The loan underwriting process and requirements are pretty straightforward, and also pretty invasive. In short, the lender is collecting as much data as they can to assess whether or not you’ll be a reliable borrower, and how much you can afford.
You are a smart person who is aware of the upsides of rental property ownership and you want to get in the game. You’ve saved 50-75-100 thousand dollars and you either want to buy your first investment property or add to your portfolio. Unfortunately, you’re going to need more than just that money for the down payment.
In the spring of 2023, Nexus Property Management® opened their first franchise office west of the Mississippi in Tempe, Arizona.
There is plenty of upside to getting into the short-term rental game. In some instances, property owners could make in three or four nights what a long-term rental might yield in a full month. But is this a sustainable strategy? Is it a bubble that’s bound to burst?
Real estate investment is the best way to create generational wealth, especially with a professional property manager in your corner. Because the opportunities to generate great capital abound, there’s also the tendency for some to bend or break the law in their pursuit of greater profit. Mortgage fraud might not seem like criminal behavior to some but the penalties are stiff.
You need money for an investment. Banks have money to lend.
There are very few ways to build wealth more consistently and reliably than investing in rental property. Although it may not be readily known, real estate is one of the most tax advantaged asset classes in the country and it’s unfortunate that most people aren’t educated about these massive financial opportunities.
Nexus Property Management
National Franchise Headquarters
49 North Union St
Pawtucket RI 02860
