At Griffin Realty Group we are dedicated to helping our clients through every step of their home-buying transaction. We’ve found that many of our clients are interested in the investment side of real estate. However, real estate investment often involves a lot more than meets the eye.
We all know that real estate values typically rise in the long term, but do they rise enough to tackle depreciation, inflation, and above all, your interest rate? It varies in all cases.
Here are a couple of ways you can make the most of this big financial step!
Fixer Upper? Or Move-in Ready?
It is crucial to decide how much work you are willing to do before the home is move-in ready. Finding a home that is discounted due to outdated fixtures and simple repairs is often the best way to see a quick return on investment. You can often figure out the true value of the home by looking at what the other similar homes in the area have sold for in the past. If you’re willing to sweat a little, you can get a big jump on inflation and liquidity costs. However, don’t invest in a home that you aren’t willing, or won’t have time, to do the work on. Paying someone to fix the problems often eliminates the perceived benefits of the discounted price.
Rental? or Airbnb?
Interested in the options to rent out your property? Picking the right rental avenue depends on several key factors. Airbnb is a wildly successful renting program and is very popular for homeowners looking to make a dent in their mortgage. Airbnb allows homeowners to rent out just one room, multiple rooms, or even the full house for any length of time. This system is known to make nearly double the rent income of the traditional method, but it does come with a few downsides. Airbnb rentals are typically only for a few days. The traditional method ensures that the tenants will pay you a steady income throughout the entire agreed upon contract.
Our team of experts is here to help answer any questions you may have about the nature of this big investment! We can help explore any options you are interested in to make some passive income on your property. We know the North Houston area, and we can help you get the best deal possible on your dream home.