In 2020 and 2021, mortgage rates broke records for being so low. Since then, the market has done a complete 180 and the buying outlook has seemed bleak to many. Despite challenges that have come up with buying property in 2023, right now is actually the perfect time to invest in property. Check out why!
Land
Land can be a great investment towards your future. There are many different uses for land like farmland, residential, or commercial use. By buying land and building some sort of business on it– be that a farm or a commercial business, you can start to actually see a return on investment with your purchase on that land. While you may not see that money back right away, you have to start somewhere! Don’t be discouraged waiting around for prices or interest rates to drop– the sooner you purchase land and can start building towards your business, the sooner you can get your business running and start to earn money on the land you’ve purchased!
Renovating a Home
Another good reason to invest in property right now is the ability to force appreciation with home renovations. If you can afford to do so, renovating major assets in the build like the kitchen or master bath will increase the value of the home. This is likely to have a payoff in the long run. As most houses have historically increased in value, if you can also force appreciation through renovations, your house will be worth more a few years down the road than it was when you originally bought it! This makes for a worthwhile investment if you decide to sell or rent the property in the future.
Renting it Out
Renting out the property you live in is becoming increasingly common these days. Many homebuyers are renting out spare bedrooms to help pay for their mortgages. This can have a strong financial payoff as it allows you to start investing from the day your tenant starts paying rent. Instead of paying rent yourself, you are paying a mortgage in what would often be similar in cost to what you would pay in rent. This is better than renting, however, because though you may be paying the same amount of month to live in a space, your tenant is helping you make that financial investment by paying rent towards your mortgage. This makes it so this monthly cost can actually be an investment for you and not just money down the drain to a landlord that you will never see again.
It Can be Cheaper than Renting
Buying can actually be cheaper than renting depending on where you live. In fact, Houston is one of four cites in the United States where it is cheaper to buy than to rent. If you can afford the up-front costs like closing costs and the initial down payment needed to buy, the cost of your mortgage may actually be less than what you would pay to rent out a place each month. While there is more money needed up front to actually get into the property, paying these up front costs can be valuable as you can save money on your monthly mortgage in addition to starting to invest in something that is yours.
No Time Like the Present
There is no time like the present. Especially when talking about big decisions like buying property, every day you wait can be a day wasted. With appreciation, the value of property increases over time. When you buy, you also start to build equity. As a renter, you are paying to live somewhere (likely monthly) and you will never see that money again. With equity, you can see that money again when you go to sell the house or if you end up paying off your mortgage. The sooner you buy, the sooner you start your investment and get that much closer to seeing a return on your investment.
Despite high interest rates and an interesting buying market, now can actually be a great time to buy. Griffin Realty Group works with clients in the northern Houston area to buy and sell homes, one of the only places in the United States where it is cheaper to buy than rent. Build equity and start your investment in property. Contact us today to learn more about today’s buyer’s market and why it’s the perfect time to invest in property in Houston.