In an effort to bring down inflation, the Federal Reserve continues to raise interest rates. That’s great news if you’re putting money into a high-yield savings account or stocking up on treasury bonds. If you’re buying or selling a house, however, it’s not exactly helping.
Obtaining a mortgage is now more expensive, and there’s a possibility that rates will inch up a little bit more before the end of the year or into the New Year.
What does this mean for your home? It could mean that selling isn’t your best option right now. Consider renting it out if you’re worried you won’t get the price you want.
Here’s how we see the situation as a company that provides rental management in Albuquerque.
You Can Still Sell: Focus on Cash Buyers
Selling is not completely out of the question. If you don’t want to hold onto your asset, you can still sell it. People are willing to pay higher mortgage rates in order to find the home of their dreams. You may have to lower your asking price a bit and be willing to negotiate terms, closing costs, and inspection results.
You can also sell to an investor who is paying in cash. The mortgage rates don’t mean much to cash buyers, and you’re likely to close a lot faster.
Renting Out Your Albuquerque Home
If you don’t want to settle for a lower price, and you’re not desperate to get rid of your property, consider holding onto it until the market moves again. With the help of an Albuquerque property management company, you can lease, manage, and maintain your home with ease as a rental property.
Here are some of the benefits of renting out your property:
- Consistent and recurring rental income.
- Your property appreciates in value.
- Your tenants pay down your existing mortgage.
- You build more equity.
- You benefit from tax breaks.
Holding onto an asset in this market is not a bad idea at all. You’ll continue to earn money on your property, with short-term cash flow and long-term appreciation. The longer you hold it, the more you earn.
Rents are rising, and there’s a lot of demand for attractive, well-maintained rental homes. When you keep up with improvements and upgrades, you only add to your property value.
Property Management Services in Albuquerque
Not sure you want to rent out your home because you never really thought of yourself as a landlord?
That’s a good reason to talk to a property manager. When you partner with a professional management company, you won’t have to do anything yourself. Your property manager markets the home finds a tenant, collects rent, enforces the lease, and responds to maintenance. You get all the benefits of real estate investing without all the headaches.
The cost of buying a home isn’t going to get much cheaper for consumers, and that’s likely to cool the real estate market a bit. There is still an opportunity to sell your home if that’s what you want or need to do, but if you’re thinking about leveraging what you can earn, consider renting it out. There is more money to be made in the rental market, and if you’re working with a good property manager, you can expect excellent results.
Contact our team at Bruni Karr Agency when you’re thinking about renting out your property or if you have questions about our property management services in Albuquerque.