In matters of money, 2017 has been a rewarding year and Jacksonville real estate was a good one for real estate investors. Rents increased across the board and interest rates stayed low. Respectable job growth kept the local economy growing, strengthening the foundation for Jacksonville as a profitable housing market.
As the year winds down, we’re looking back at some of the basics we covered in 2017 from our blog covering the hows and whys of local market investments. We covered the practical aspects and insights to help you get started to reap the benefits of Jacksonville’s opportunities.
5 Signs You’re Ready to Invest
Funds from home equity, a healthy 401k, or a financial windfall can get you started in real estate investments. If it’s within your field of possibilities, you can also borrow money from friends or family, or accept gifts. While lenders have raised the down payment requirements to 20 percent for investment properties, they aren’t necessarily particular about its source.
Besides the capital to get started, a realistic attitude toward risk will help you through the ups and downs of inherent in every opportunity. The advice and experience of experts will give you a basic foundation from which you can learn and make informed decisions.
What Real Estate Pros Know That You Don’t
Working with a real estate agent who specializes in turkey properties gives you access to their knowledge and the data tools they use to shape their strategies for property acquisition. Since turnkey agencies handle properties for their investor clients from the acquisition to their management, their goal is to choose homes that promise the greatest returns.
The basic drivers of the housing market rely on job creation and household formation, which every real estate professional uses to assess the conditions affecting all real estate sectors. The data real estate professionals use come from federal and local resources, as well as the public schools and the National Association of Realtors.
6 Things to Consider When Choosing Rental Property Location
Identifying and understanding location characteristics is central to an investor’s success. The economic, demographic and housing characteristics, transportation corridors and school districts make each location unique. Property tax rates, rental rates and home values factor into critical location decisions as well.
It takes time to discover these data and track them over time, which makes the services of a real estate management agency invaluable. They may make the findings part of an acquisition decision, or use them internally to support their acquisition and property management strategies.
How to Invest When You’re Broke
You don’t need thousands in the bank anymore to get started in real estate investments. Crowd funding turns the smallest investor into a landlord and anyone with a home or retirement savings can get into the market as well. HELOCs (home equity line of credits) and withdrawals from 401k plans can be used to get started in real estate investments through crowd funding, partnerships, or independently.
Should You Finance or Pay Cash?
Owning your own home outright sometimes makes financial and personal sense, but it may not be the best approach for investment properties. The ability to leverage investments at favorable financing rates makes real estate one of the most profitable long term avenues for financial security and success.
Leveraging gives property investors the ability to spread out their capital to make more using less. Cash purchases do the opposite. They concentrate and tie up capital, which limits the chances for higher aggregate returns on investment. In this low interest climate, it makes sense to use other people’s money, especially with favorable tax treatments.