Surge in Rental Demand Has Created the Perfect Investment Opportunity for Buyers Today

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When the market crashed in 2007, most of us in the real estate business knew it would be a tough recovery period. We had anticipated the influx of distressed sales and we also knew that lending would never be the same again. But what many of us may not have realized is the impact the current (at the time) and subsequent market conditions would have on our rental market.

It turns out that there are a huge number of homeowners whose homes have succumbed to the dire circumstances leading from the crash, forcing them to lose their homes and turn to rental properties to get by. The typical rendition of distressed sales we have been seeing over the past several years now has either been short sales or foreclosures – and each has a separate waiting period before the property owner can safely reapply for another mortgage and expect to be approved. The post short sale period is about two years before one can reapply for financing on a new home. For those that have endured a foreclosure, they must wait at least five years before they can hope to successfully apply for another mortgage.

The question is, that with all the people having recently faced such struggles, are there enough rental properties to accommodate them? And the answer, particularly in Central Oregon, is a simple “no”.

Investors Enjoying Ideal Conditions for Solid Returns

Enter buyers and investors. When you consider the record setting low interest rates that continue to be available, combined with the low market values that have hovered at the current levels for a while now, it is a recipe for investment success. In simple terms, a good property to invest in will yield you at least a ten percent return (gross) on the purchase price of the property. For example, on a home with a $100,000 purchase price, the ideal ROI in order for the investment to be viable is at least $10,000 gross annually.

In the past, this has not been possible with the high cost of properties in the area but with today’s low values coupled with the affordable cost to borrow money, it is a win-win situation for everyone involved. So much so that some properties are even yielding gross annual returns of as high as twelve to fourteen percent.

When all is said and done and another ten years go by – those that choose to seize the opportunities that today’s market presents will be in a very solid financial position with respect to these investments. The message is simple: Don’t miss the opportunity to buy now. If you have been on the fence about buying a new home, have considered expanding your real estate portfolio or just want to engage in the current phenomenal real estate marketplace – contact me today. It will be a pleasure for me to help you realize your realize goals!