Real estate is a gold mine, especially in the Golden State. Even if you’re not considering buying a home in California right now, the Bay Area market is worth a close look.
Are you a first-time real estate investor? Let the McDowell Real Estate Group guide you through the ins and outs of this rewarding venture.
Real estate properties are a tangible, familiar, and secure investment vehicle, even for first-timers. Investors can make their money grow passively through land appreciation over time or take a more active approach by pursuing rental income.
Land is a limited and finite commodity. Because of this, it is bound to appreciate in value over time, regardless of the ups and downs of the local real estate market.
Generating income from rental properties is a sound investment strategy, especially in places where demand for real estate is higher than supply. The Bay Area is a good example of such a market.
If you are searching for lucrative opportunities that will put your investment money to good use, the Bay Area has it all:
San Francisco and Silicon Valley are already crowded, competitive, and expensive, so targeting a nearby residential area for your investment property makes a lot of sense. Choosing a Bay Area suburb like Pleasanton, CA is a strategic move because:
Cash is the most straightforward means to buy an investment property, but if you need a mortgage to finance your purchase, these tips will come in handy:
There are key differences between buying residential real estate and financing an investment property. One of them is mortgage insurance, an option for buyers who can’t afford a 20 percent down payment (at least this amount is required to secure a traditional mortgage for an investment property). Paying a larger down payment improves your chances at securing more favorable interest rates.
Better interest rates apply to investors with a high credit score of 740 or better. If you plan ahead, you can provide yourself with ample time to improve your credit score before seeking financing options for your real estate investment.
When investing in real estate, work with a local lending agency. They can provide you with greater flexibility to support your needs. Their familiarity with the local market, as well as interest in growing the local investment market, will also work to your advantage.
From single-family homes and condos, to commercial properties and vacant land, you should understand the range of options available for you to invest in. Different types of properties require varying degrees of involvement, so choose the right kind of real estate to suit your goals and plans.
Real estate – even for investment purposes – is all about location. Select a spot that promises the best growth opportunities to make your investment worthwhile.
Before taking on ownership of a property, make sure that there are no hidden or potential issues with either the structure or title.
If you are sure about taking the leap into the world of real estate investment, do it with the guidance of a knowledgeable and experienced agent. Like buying or selling a home, investing in real estate is a thorough process. It pays to have a professional watching out for your best interests every step of the way.
For more investment and home-buying advice from the leading real estate agents in Pleasanton, CA, get in us, the McDowell Real Estate Group. We look forward to hearing from you
Helping home buyers find just the right home and helping home sellers find just the right buyers for their homes. We help people in the Pleasanton, Dublin, Livermore, San Ramon and Danville area with property of all kinds.