Urban Investment Property and Your Financial Future
America’s cities are changing. New technology makes it possible to make a living from your laptop. With this freedom, young, tech-savvy, and well-paid people are flooding into urban city centers in search of culture, convenience, and rentals. Many urban areas are also seeing a rise in short-term rentals, with websites like Airbnb opening up the lucrative timeshare market to local owners.
Rental prices have risen an average of 5.1% in the United States. If you live in or near an urban area, you may have wondered about the financial potential of urban investment properties. Here are some tips that can help you decide if investing in urban property is right for you.
Investment property is investing in your future
Owning an investment property is one of the best ways to secure your financial future and can be a successful strategy to help you achieve your long-term goals.
• Your rental property will provide you with a steady residual income. While the initial investment may be high, the long-term payoff is well worth it.
• There are many tax deductions and benefits associated with owning investment property. Check with your local IRS office or tax professional for more information.
• Owning land is one of the safest investments available. Land rarely depreciates.
Why consider urban properties?
• The population in the largest urban areas has increased steadily since 2010. This trend is driven not only by new economy millennials, but also by retiring Baby Boomers. The older crowd is looking to get rid of the old vacant suburban house in which they raised their families. With older generations living longer and healthier, they too are looking for the convenience, comfort and access that living near the city center offers.
• This increase in housing in the city is expected to continue indefinitely. Urban rental property owners can be sure that their rentals will always be in demand.
• Many cities and municipalities offer local tax breaks for buyers of older or dilapidated properties, to encourage business owners to use their own money to clean up eye injuries and properties that reduce the value of the surrounding area. Your local urban property specialists can tell you more about programs in your area.
• Statistics show that many people choose to rent instead of buy. Some of the reasons are the ability to change locations relatively easily, not having to be responsible for the maintenance and upkeep of the property, and the lack of money for a down payment.
Now is an ideal time to buy urban property as an investment. The new economy has given the middle class more mobility and choice. Why shouldn’t you benefit too? Contact your local urban property specialists for more information.
