- Home buyers in todays real estate market prioritize securing a long term lucrative property rathe than heavily focus on low competitive rates.
- With easily accessed technology like Airbnb and VRBO, both short- and long-term rental rates are increasing at a miraculous speed.
- Industry pundits predict that rates will come down by the 3rd or 4th quarter of this fiscal year. Waiting for this time can complicate the buying process for the investor.
People from all walks of life are involving themselves in Real Estate Investment. Currently, the market is seeing an increase in mortgage rates that has turned those investors off to the idea of jumping in now. Today’s volatile market, rife with seemingly unending raises in rates, is a sign to many that it is not the time to invest in Real Estate.
To assist with risk mitigation, we have STR Verifi- a short-term rental analysis tool that calculates estimated annual income, occupancy rate, and ROI; information that is all approved by mortgage rating agencies.
This AI couples risk assessment and specific market data that allows investors to make educated, fact-based decisions. This eases the due diligence process by compiling pertinent rental data onto one platform at the click of a button. No longer will you spend endless hours trying to figure out if your potential rental property is a sound investment.
There are market indicators and financial trends that show the time to buy is now; let’s dive into some of those.
Why You Should Buy Rental Property in 2023
Mary the Home, Date the Rate
According to Bankrate, people refinance their homes every 5-7 years on average. Even if the home was bought with a competitive rate for the time, these figures are constantly adjusting. This allows homeowners to always be rate shopping.
For this reason, finding the home of your dreams and securing it should be the first priority. The opportunity to rework your financing will always be there.
The Housing Market
Industry pundits predict that rates will come down by the 3rd or 4th quarter of this fiscal year. Waiting for this time can complicate the buying process for the investor.
Because financial literacy is more available than ever, more and more people invest in real estate every day. This means the availability of homes is getting increasingly scarce. MBS Highway just released their report on home attainability. Here’s a breakdown:
Normal markets should see an average of 4.6 months supply of inventory, currently the real estate market is showing only 2.9 months of supply; when only discussing active listings the supply decreases to a low of 1.9 months of inventory. The number of available units nationwide is 980K; when only discussing active listings, there are only 626k available homes. To reference, there was an average of 4M homes available in 2007.
What does this mean for you? The time to buy is now; as there is a big disparity in inventory to active investors. Plainly put, get in while you can.
Rental Demand is Increasing
With easily accessed technology like Airbnb and VRBO, both short- and long-term rental rates are increasing at a miraculous speed. This can be tracked with vacancy rates, and trends show this is steadily decreasing. The US Census Bureau reports that in the United States, the overall rental vacancy rate was 6.9% in the first quarter of 2021, down from 7.3% in the same quarter of 2020. This indicates that rental demand is increasing.
The market dictates rates, not the Government. Meaning rental rates rise with demand, which is skyrocketing. Real Estate Witch reports that rent prices are increasing 4 times the rate of earned income.
Even with a volatile market, real estate investors who do their due diligence are seeing high returns on their investments.
Contact Us to Learn How MBANC’s Non-QM Loans Can Help You Stake Your Claim via Rental Property
Don’t let the idea of a rates scare you from making the investment you want! At MBANC, we get it. You’ve spent your life succeeding on your terms, and this is not something you’re willing to compromise on. And, honestly, you shouldn’t have to.
Though investing has traditionally been seen as a gamble, with our innovative AI, STR Verifi, investors and realtors now have the capability to calculate the return on investment with remarkable precision, providing investors with peace of mind. Our passion is financing short-term rentals for people like you who live modern, non-conventional lives and still prosper in unimaginable ways.
We also offer no-income DSCR loans to finance the purchase of rental properties and architect the future of your dreams on your terms. Talk with our team to learn about our financing options.