America’s cities are changing. New technology makes it possible to make a living from your laptop. With this freedom, young, tech savvy, and well paid people are flooding urban city centers in search of culture, convenience, and rentals. Many urban areas are experiencing an increase in short term rentals as well, with websites like Airbnb opening up the lucrative timeshare market to local property owners.
Rental prices are up by an average of 5.1% across the United States. If you live in or near an urban area, you may have wondered about the financial potential of urban investment properties. Here are some tips that may help you decide if investing in urban properties is right for you.
Investment Property is Investing in Your Future
Owning an investment property is one of the best ways to secure your financial future, and can be a successful strategy to help you achieve your long term goals.
• Your rental property will provide you with steady, residual income. While the initial investment might be high, the long term payout is well worth it.
• There are many deductions and tax benefits associated with owning investment property. Check with your local IRS office or tax professional to find out more.
• Owning land is one of the safest investments available. Land rarely depreciates.
Why Consider Urban Properties?
• Population in larger urban areas has been increasing steadily since 2010. This trend is driven by not only by new economy millennials, but retiring Baby Boomers as well. The older crowd is looking to unload the old, empty suburban home they raised their families in. With older generations living longer and healthier, they too are looking for the convenience, comfort, and access that living near the city’s center provides.
• This increase in city dwelling is expected to continue indefinitely. Owners of urban rental properties can be assured that their rentals will always be in demand.
• Many cities and municipalities offer local tax breaks for buyers of older or more run down properties, to encourage entrepreneurs to use their own money to clean up eye sores and properties that bring down surrounding values. Your local urban property specialists can tell you more about programs in your area.
• Statistics show that many people are choosing to rent rather than buy. Some of the reasons are ability to change location relatively easily, not having to be responsible for property maintenance and upkeep, and lack of money for down payments.
Now is an ideal time to purchase urban properties as investments. The new economy has given the middle class more mobility and choice. Why shouldn’t you benefit as well? Contact your local urban property specialists for more information.