Updated: Nov 3
Real Estate Investing in Anderson and Greenville, South Carolina
Rising rates and higher home prices, may have you wondering - why should you invest in the real estate market? Even with the crazy market, investing in real estate is a long-term investment that can provide many benefits. In this opinion piece, we are going to discuss the state of the housing market and investing in real estate in South Carolina!
When investing in the real estate market, it’s important to ask yourself some questions about why you are interested in investing in real estate. Consider why you are investing - are you planning to occupy the space or rent it? If you’re buying the property and plan to live there long term, it makes sense to put your hard earned money into a home rather than renting. You should consider your future plans as well - do you plan to expand your family in the near future? If you do, you may want to consider purchasing a larger home to grow into over time. On the other hand, if you are planning to rent out the space it's about how much money the property can generate for you in today's market and 10 years from now. You would have to maintain the property for your tenants and have an understanding of the rental market; plus put more money down on the property. There’s a unique inventory of homes that may need a little TLC that the dividends could pay off exponentially over the next 10 years.
In the Anderson and Greenville, SC area, putting your home up for rent can generate a large income for you as the area continues to flourish and grow. With the rising cost of living, locking in a low mortgage rate now could help you in the future market.
Mortgage rates are currently at elevated levels than what they’ve been over the past three decades and may make owning a home more affordable than renting one. If we look back two years ago, rates were even higher than they are now. Rates rise and fall constantly, and it is projected they may continue to rise. If you invest now, you would be locking yourself into a lower-rate mortgage now. If you do invest and the rates go back down due to the projected recession, you could refinance in the near future.
Right now the real estate market is starting to normalize again, and although prices are falling, they are not projected to fall intensely in the next few years. It is important to look at real estate investing as a long term investment, not a short-term trade. If you are in good financial standing and ready to start putting your money into real estate, the uncertainties of the economy shouldn’t stop you. It’s about what kind of properties you finance and how you intend to use them.
There is never a “perfect” time to invest in the market as it fluctuates constantly. No matter what, real estate is always a good financial investment for your future. Investing in real estate doesn’t have to be in high priced homes - it can be smaller, less risky investments that make you the most money. Holding a property and letting time grow in your investment will likely generate a positive outcome in the future!
David Locke REALTOR®
Locke and Key Associates at Keller Williams Western Upstate
Building and Selling Upstate South Carolina Since 1951