Property investment is big business, and we all need places to live after all. But have you noticed that property development and investment rolls with the trend?
In fact, the current big property investment push is in detached family housing?
Let’s look at the top four reasons why investors are putting their money into single family property units.
First Time Buyers Have a Family.
Being a property investor can work in two ways:
Either you buy the property to rent out to a tenant or you buy the house for yourself and invest your time and money over a longer period. Selling when you are ready to move on to something else.
The average first-time homeowner is 33 years old and the average age of a first-time mother is 26. This means the majority of people looking to enter the housing market are families.
On top of that, there are plenty of families out there looking to rent their homes as well.
Acquire Single Family Property Below Market Value
A single family home’s value is driven by its condition. Financing for repairs and upgrades is very much determined by income.
When these two items clash, the property value will decrease. When it comes time to sell, the price you pay can be driven down below the current market value.
Also, if people are looking to sell an owned property, they most likely have something else lined up for themselves. This means they are looking to make the sale as quick as possible, to reduce the risk of incurring double mortgage costs.
If you drive a hard bargain and focus on the right properties, you can pick them up at the right price to turn a profit. All you need are a few minor investments into the property’s condition.
Invest More Money for Quicker Returns with Single Family Units
Whether you are investing in a single family property, or stocks and shares, the end goal is to make money.
You invest money to make money.
With this type of property, the unit costs are lower than multi-family accommodations. So you need to save up less capital in order to make the initial investment.
Because the demand is high, you can get a quick turnaround on a new tenant. Which means the property can start earning you money quickly. Within a month, you could see returns that can be reinvested in a second property.
When you invest in detached housing units, you could have four or five units up and running, earning you money in the time it would take for you to save up the funding to invest.
People are Looking for Single Family Housing Opportunities
One of the more basic reasons as to why investors are putting their money into single family property is good, old-fashioned supply and demand!
Families are looking for detached properties. Whether to buy or rent, the demand is there.
People want space. They want their children to grow up with a place they can call their own. Gardens and garages are important to the modern family.
Not to mention the fact that the average age for senior citizens looking to downgrade their property is increasing.
The demand for single properties is high, and that fact alone makes investment in this area a sensible business decision.
If you are interested in a single family property, then now is the best time to take the first step.