Recent data shows that single-family rental home investments truly are paying off for the buyers. The bond ratings agency Morningstar recently wrote in a report, “Performance of all single-family rental transactions has met or outperformed Morningstar’s original forecast.”
Looking to invest in real estate? Single-family homes might be your best bet. Buying a rental home has shown to pay off because there are many Americans who cannot quite buy, yet do not want to live in an apartment.
“The increase in demand seems to be driven in part by people who want to live in houses, but cannot get a mortgage, either because they do not have enough cash for a down payment or they have damaged credit,” says Brian Grow, managing director of RMBS at Morningstar Credit Ratings.
This increase in popularity of singe-family rental homes have made the pay off even greater for investors. In 2015, owners of these rental homes raised prices by an average of 3.5 percent. Morningstar also reported that there is still low vacancy of single-family rental homes.
Darn Blomquist, vice president for RealtyTrac, also acknowledged why we see some families choosing to rent.
“They are more likely to have formerly been in a home and like living in a home as opposed to an apartment,” he said. “But they are also more likely to not qualify to buy a home because of a foreclosure or short sale during the crisis.”
Realtors expect the demand for rental homes to remain high: just another reason why single-family rental home investments might be the right move for you today. RE/MAX Paradise lists many single-family homes that would make for great rental properties. Browse the properties here, and reach out with questions or interest!
Not looking to invest but to rent instead? RE/MAX Paradise can help you with that, too!