Is Investing to Rent a Safe Investment?

[RyanTucker]

A question people often ask is whether or not investing in a property for the purpose of renting is a wise and safe investment. Here are a few facts to consider:

First, foreclosures are at an all time high.

What that means is there are thousands of displaced people who are looking to rent a property for themselves and their family. These people will not be able to purchase a home until their credit scores recover, which means they will be renters for some time.

It is Housing. Plain and Simple. People have to have a place to live with a roof over their head.

Second, according to the U.S. Census Bureau as of January 2012 the total U.S. population is at 312,848,157 people. They project it to be at 439 Million by the year 2050. With this large increase in the population the need for housing is on the rise.

Third, who rents homes? According to the U.S. Census bureau as of September 2011 34% of the total U.S. population live in homes that are being rented. It has been projected by the NAA (National Apartment Association) that the U.S. home ownership rate will decline 6-8 percent over the next decade. For each single point of decline in the rate the demand for 1 million rental-housing units is created. So, let all the numbers speak for themselves. Our population is going up and the number of people who will have to rent a home as opposed to buying a home is going up.

Certain cities have higher rent demand than others.

But rent income creates a great potential great ROI.

What do you think?

 

[darrmont]

Be very careful

Be very careful about investing in property in the USA, many many people have been sold houses with tenants in and the tenant leaves a few months later having wrecked the house and leaving it needing huge amount of money to repair.

The figures can look very attractive but dot be fooled as you will often be buying a liability rather than an asset, property taxes, utility costs, lawn mowing, snow clearance costs, and general maintenance will amount to many thousands of dollars per year and do not take the word of estate agents on what it ill cost you. If you are outside the USA it is very expensive to get registered for tax and to get accountants, as many local accountants will file tax returns incorrectly. Remember you have 50+ states with 50+ different tax rules and every town and county will have a tax of some sort. The USA is pretty run down in a lot of places, and the housing stock is old and they are tax crazy as they need money to update infrastructure after years and years of neglect. Many town libraries will have 2 or 3 computers, it is often a first world country with third world infrastructure and little consumer protection. Let the buyer beware !!!!!!

 

[whpmc]

Absolutely!

Investing to rent is a great idea as long as you make smart decisions. You need to check out on a lot things before you invest into real estate for this reason.

There are various lists available online which tell you what to look for when you buying a property to rent. They help you select the right location with the right demographics.

Do you research and the ROI on rental property will serve to be steady income.

 

[EmeraldVista]

I have always thought that if you make sure you choose a property in a place with a high tourist/ business market, then buying to let can be very profitable.

 

[DarrenG]

I believe that if you have good renters, it is a good investment. That's why it is so important to make sure of who you rent your property out to

 

[r1ch1e]

hi guys - im a first time investor in the USA any tips? I was looking at florida - purely as i love the sunshine