The price of real estate is has gone up considerably in the last few years here in Toledo. This is good news for property owners, but there are still opportunities for those looking for investment properties such as rentals. In a market such as this, rental property is an excellent investment for several reasons:
Rental properties bring in consistent cash on a monthly and yearly basis. Rental contracts are relatively long term for residential property and usually much longer for commercial property. Those who need cash flow can get it from real estate, as opposed to the stock market. According to financial analysts, annual dividends on similar sized investments are generally higher. It is also worth noting that this consistent income and a strong relationship of paying loans on time enables further real estate investments.
Other investments have their benefits, but few are as multifaceted as real estate. Not only are investors getting cash regularly, the property’s value increases. While Toledo is still below the national average in price, real estate site Zillow lists property values as “Very Hot,” which is in keeping with the national trend of values in cities of our size.
Inflation is good in real estate
Inflation means that the same paychecks have less purchasing power, but it is not a bad word for real estate. Real estate is at the forefront of prices going up. This rise ensures that property owners are less exposed to a reduction of value that other investment opportunities may see.
Attorneys provide guidance during real estate deals
Investment property is simpler and more complicated than buying a residence. Since there is less attachment, the potential buyers are less prone to impulse buy, but the amount of money involved is likely considerably higher than the average home. A knowledgeable attorney who understands the market here can help buyers, sellers and those interested in finding a deal that works for them. They do this by knowing the market, but by also knowing how to draft a contract that avoids unnecessary exposure for transactions, whether it is a rental agreement or a sale.