Are you searching for ways to ensure that you’ll have the money to pay for things like college tuition, elder care, and retirement? An excellent way to build wealth in our ever-changing economy is to invest in real estate. Read on for more information on how investing in real estate in Lane County can be a healthy addition to your investment portfolio.
Why Lane County is a Long-Term Investment Winner
Anchored by the economic engines in Seattle and Portland, the Pacific Northwest enjoys a booming economy that bodes well for real estate investors as the demand for housing and commercial buildings continues to soar. In Lane County, for example, investors have reaped significant financial rewards from the rising demand for property propelled by:
- Seven straight years of job growth
- Fast growing population over the last ten years
- Prime Pacific Coast vacation destination
Lane County Real Estate Prices Soar
More and more people are flocking to Eugene, and there is a distinct lack of housing to meet the current demand. According to the September 15, 2018 edition of The Register-Guard, real estate values continue to rise as supply doesn’t match the current market.
The rising population, vibrant economy, and demand for housing makes investing in Lane County real estate a reliable bet for building wealth. Now that you know why it’s a terrific idea to invest in property in Lane County, let’s take a look at several ways in which you can get started investing in our area.
The Tight Rental Market Makes Now a Great Time To Buy
As anyone who has tried to find rental housing in the Eugene-Springfield area can attest, rental properties are in short supply while monthly rental rates continue to climb. Indeed, rents in these increasingly hot communities have jumped 20-40% since 2014. The tight rental market means that now is an excellent time to become a Lane County landlord.
Along with the financial benefits that come with owning rental property in our hot housing market, you’re also in line for many tax breaks. According to the IRS, rental property owners can lower their Federal tax liability through deductions on items such as:
- Mortgage interest
- Operating expenses
- Maintenance costs
- Property Tax
For complete information on how you might benefit from buying a rental property, I highly recommend that you consult your financial advisor.
Seize the Opportunity to Let Rental Income Pay For Your Vacation Home
Sea Lion Caves. Three Sisters Wilderness. Heceta Head. Can you imagine a more magnificent place to spend your valuable vacation days than amongst the gorgeous natural environment, wineries, and charming towns found in Lane County? You’re not alone; countless families choose to vacation in our part of the world each year, and you can tap into the inherent desirability of Lane County as a tourist destination by investing in a vacation home.
Buying a vacation home is an exciting option for many buyers because it allows you to have a permanent home base in a place where you regularly vacation and the income gained through short-term rentals helps to cover the cost of owning the house. While purchasing a vacation home is a fantastic option, it’s important to keep a few points in mind before you start house hunting.
Things To Think About Before You Invest in a Vacation Home Include:
- What type of home fits your lifestyle?
- How much can you afford to spend?
- Can you afford the property if the number of rentals drops off?
- Would you mind missing the high season if you need to obtain the maximum possible rental income?
- Is your family in favor of vacationing in one location?
Vacation homes are also subject to different tax laws depending on how often you live in the house. In general, you can deduct things like mortgage interest and property taxes from your federal income taxes as long as you don’t rent the property out for more than 14 days during the year. A separate group of tax laws regarding potential tax deductions on the home comes into play if you’re regularly renting the property to vacationers.
Due to the potential tax-related complications involved in owning a vacation rental, it’s crucial that you consult a tax professional.
How Much Money Can You Invest in Real Estate?
When deciding what type of real estate investment best fits your needs, it’s vital that you consider your financial position and how much money you can afford to commit. An excellent way to begin answering this question is to meet with a lender who can help you to determine the maximum amount of money that you can borrow in a real estate loan.
Keep in mind that there are challenges in financing investment properties and vacation homes. Lenders consider these real estate loans riskier than primary residence home loans because a borrower is more likely to default on investment properties before walking away from the family home.
So, although it’s not impossible to obtain real estate loans with favorable interest rates and lending terms, it’s crucial that you come prepared to show the lender that you’re an excellent candidate for financing.
Lenders will expect:
- A healthy credit score
- Adequate monthly cash flow
- Sufficient cash reserves to cover at least two months of expenses
- At least 20% down payment money
Rely on Me for Expert Real Estate Guidance
Once you have an idea of how much money you can safely invest, it’s time to talk to a local real estate agent. I have years of experience in helping my clients to purchase terrific investment properties in Eugene and throughout Lane County.
Buying property with the primary goal of making money requires a separate group of considerations from that of the home that you want to live in full-time with your family. I’m eager to help you navigate the process of obtaining an investment property that fits your budget and lifestyle.
Some of the wealthiest people have investments in real estate. Now is a great time to start investing in Eugene.
Call me now to get started.