For years prior to the 2008 real estate bubble, HGTV specialized in shows about investment properties, rehabbing homes, and even the questionable practice of flipping homes. Since 2008, many Americans are skittish about investing in real estate, viewing stocks or even bonds as a safer bet. However, given the volatility of the stock market and the perpetual demand for housing, it's probably a good time for small-scale investors and families to consider investing in the local real estate market. There are numerous companies that offer comprehensive services for landlords and property owners, and the potential for substantial income is there. Here are three great reasons to consider purchasing an investment property in the greater Grand Rapids area.
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Low interest rates and sweat equity increase income potential. Interest rates are still incredibly low for mortgages, which means that the effective cost of purchasing an investment property, even if completely financed, is at one of the lowest points its been in decades. If you have the liquid capital to purchase an investment property outright, so much the better. The potential for overall financial gain is substantial, especially if you buy a property that could use some TLC and do much of the manual labor (such as repairing and painting walls, installing flooring, upgrading hardware, landscaping, etc) yourself or with the help of family and friends.
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Property values are on the rise in West Michigan. This means that not only do you stand to make regular, monthly income from the rental of the property in question, should you choose to sell it, it is likely that there will be profit there as well. Although prices have been stagnant for years, they are slowly beginning to increase, a promising sign that this is a long-term trend and not just a brief rally. Additionally, there have been some major, long-term investments in the city center recently, ranging from the construction of new research facilities to mixed-use rental spaces. Downtown hasn't been this vibrant and in-demand in a long time!
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New development in the city means greater housing demand. In addition to all the Gen Xers and Millenials who would like to live somewhere close to where they work, there is an increasing portion of Baby Boomers moving closer to city centers and renting as they approach their golden years. Whether your target market for renting will be working families, retired people, or students, there's a steady increase in demand for housing for all three of these demographics across West Michigan.
So there you have it! If you're considering purchasing an investment property in the Grand Rapids real estate market or the West Michigan real estate market, give the experts at Pyxis Realty a call today! Not only do they know the region well enough to help you find the right neighborhoods for your price and desired clientele, they also know the market well enough to help you find a diamond of a deal! Call or email our team today for the hands-on, experienced help that will make your real estate investment a breeze!