When most people get into owning rental properties, they tend to look for houses in their area. And while that can have its advantages, there are a few good reasons to look for rental property outside your immediate location. What are some of these?
Fund Your Future Home
If you think it's likely that you will want to move to another area during retirement or when you start a family, it can be a good idea to start investing in that future home right now. You may be able to fund your next home by purchasing it now and letting your renters make the payments until you're ready to move in. If you are looking for a home that fulfills both objectives, though, be sure to take into consideration both the wants of current renters as well as your future needs in a family home.
Invest in Lower-Cost Areas
If you live in an area with a tight market or high taxes, you can benefit from being able to look for property where you can get a better deal. This might mean buying a rental in a nearby city, county, metro area or even a different state. Do the research on your intended rental area to determine if property values are rising or falling, if crime statistics indicate potential problems for a long-distance landlord or if the demographics match your intended pool of renters.
Find a Better Rental Market
Rental prices and markets can vary widely depending on the area, so you may be able to get better renters and more money by looking for a better area in which to own. For example, a university area may offer a larger selection of renters, or an established neighborhood on the outskirts of a larger city might bring more stable renters. Work with a qualified local real estate agent to determine how the rental market is and where it's headed.
Help Out the Family
If you're in a position to help family members financially but don't live nearby, a rental can be a good vehicle. You could, for example, save money on college costs by purchasing a rental for your college-aged child. Or you can help take care of older family members by renting a reliable and well-maintained home to them.
No matter what your individual reason for purchasing a rental property is, you may find that it's beneficial to think outside the box when it comes to location. Click here to learn more about real estate.
Share24 June 2016
Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.