Does it seem like everyone is trying to buy or sell real estate right now?
It’s an interesting period for the Irvine rental market. Vacancy is extremely low, rental rates are high, and well-qualified tenants are desperately looking for attractive and affordable rental homes.
They’re hard to find.
If you’ve been thinking about investing in the Irvine rental market but you’re hesitating because of the high price of homes and the recent interest rate hike, it’s worth your time and resources to continue searching for the right opportunity. You’ll have immediate success when you list that home on the rental market, and while things are pretty competitive right now, there’s a lot of room for growth and creative thinking.
Let’s talk about the right time to invest in the Irvine rental market.
Hint: It’s always a good time to invest in the Irvine rental market.
Buy When Financing is Easy
Interest rates have gone up and they’re likely to go up again, but historically speaking, this is still a manageable time to finance a real estate purchase. When you have good credit, a decent down payment, and a lender or broker who can deliver the best deals, a 30-year mortgage at or under 7 percent is possible. If you wait much longer or you decide to buy when the sales market slows, you might find that lenders have begun to tighten their lending criteria. Finding an inexpensive way to fund your investments could prove to be challenging, especially if you don’t already own property you can leverage.Invest When the Rental Market is Low on Inventory
Investing in real estate when there’s a lot of competition on the rental market and very few tenants looking for homes isn’t a great idea. You’ll be left with a brand new rental property that isn’t earning you any money. This is an opportunity to provide good tenants with something they want and need: a well-maintained, single-family home for rent. Those are extremely hard to find in the current market. It positions you well to earn high rents and attract reliable residents. As new construction projects deliver extra housing options for tenants, the tight inventory will ease a bit. When you can get out ahead of that and offer something with a high rental value, you’ll earn more than you would if you invested during a time where no one is really looking for rental houses.Strategize with an Irvine Property Manager
The right time to invest in the Irvine rental market depends on the market itself and your own investment goals.
If you really want some good direction on what to buy and when to buy, talk to an Irvine property manager. You’ll get a lot of great advice from real estate professionals. A property manager, however, brings a different perspective. We can talk to you about how tenants are responding to the housing shortage and what you should be looking for to really maximize your investment potential right now.
We welcome new and experienced investors to contact us at HCM Property Management. We’d love to partner with you on finding and renting out a great property in Irvine.
