Right now, however, there are some very compelling reasons for getting started and we've picked five key ones for you to consider.
Property values are rising - The Albuquerque area is enjoying a sustained period of property price increases. In a blog last week, for example, we noted that the past quarter had seen good increases in both median and average home prices, both statistics showing really good year-on-year growth. This demonstrates that homes are rising in value almost as soon as they are purchased, meaning that you are very likely to almost instantaneously start building equity in property.
Financial markets are never certain - We've seen a tremendous renaissance in stock markets since the election and this is of course providing excellent short term returns. However, while property markets have been steadily and consistently rising in recent years, the same cannot be said for financial markets, which have had a roller coaster history of late. While values can of course rise and fall, property is an arguably unrivaled medium to long term investment, based on track record.
Rentals continue to be in high demand - While it's fantastic that so many people have been able to finally move into a home of their own in the past few years, the rental sector continues to see very high demand levels. Therefore if your plan is to develop passive income through your investments, all predictions point to increasing rents, simply due to the number of people who remain in this sector. Also remember that rental property ownership provides worthwhile taxation benefits, such as a range of claimable expenses.
Consistency in a time of change - With a new government now finding its feet and enacting a wide range of policies, we're in a time of considerable change in America. While time will tell if this will produce a range of positive and/or negative outcomes, property investment has always shown how resilient it is to political change and therefore offers an exceptionally well-proven and consistent revenue stream and return on investment, no matter who is in office.
More lifestyle options - By increasing your stock of homes, you can develop different lifestyle options that suit the time of year. For example, you could choose to spend the summer in a downtown Albuquerque residence to enjoy all that the best weather months have to offer, then perhaps move to another residence that enables you to enjoy Santa Fe winter sports. The possibilities are pretty endless and what could be better than enjoying more choices while your equity grows!
We hope that the above thoughts give you some inspiration and would be pleased to discuss any aspect of developing a property portfolio with you. Why not contact us today.