As the real estate market continues to boom, many renters are considering purchasing their first home. Determining when you are ready to buy a home comes down to several factors including:
- Down payment
- Debt to income ratio
- Job security
- Credit rating
Demonstrating financial responsibility is critical when seeking a loan for a home. However, not all individuals are able to afford a new home. When this situation occurs, many will turn to rental units for housing. Renting a home can be equally as challenging as some people may be unable to meet the application standards due to job stability and poor financial management. Working with a property management company can assist in helping real estate investors to find the rental tenants who will pay on time, and be quality tenants.
Buy or Rent?
Determining when you should buy or rent comes down to your long-term goals. It is been shown that it is 30% cheaper to buy versus rent, but if you do not plan on owning the property for a long duration, buying may not be the right option. Merrimack Valley is proving to be a solid investment opportunity as the home appreciation averages 3.7%.
Real estate investors know it is an ideal time to buy thanks to historically-low interest rates. Several lenders are asking for no-money down, or low money down payments, opening up affordable loan options. Buying a home does make more sense for those seeking financial stability. Consider the duration you do plan to live in the home before you sell, or consider if you would rent your home in the future if you do choose to sell.
Housing market trends in Merrimack Valley have shown a 9% increase yearly and an 8% rise in median rent. Positive trends will help to sway investors to the area, where property management companies to assist in renting out the units.
New Home Construction
Massachusetts does have strict construction laws, which can make it difficult for new investors to build, causing a low housing inventory. Sellers are finding the market to be ideal for them to capitalize on their property as many people are making generous offers. Sellers do need to accurately price their homes in order to catch the right buyers.
Buyers too need to be mindful of the property being sold. Some find that buying too quickly leads to buyer’s remorse and they often end upside down in the home due to investing in repairs and expensive remodels. Renting property makes more sense for those seeking a newer home interior, but unable to afford the homes currently on the market.
Working with a property management company can help you find the properties that are sound investment options. If you do plan on purchasing rental units, and you need assistance in locating the best ones in the Merrimack Valley area, contact Keyrenter Property Management Merrimack Valley for more information.
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