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Posted by Brian Piercy on Saturday, March 2, 2024 at 7:22 PM By Brian Piercy / March 2, 2024 Comment
Choosing the right time to buy an investment property can be challenging, especially if you are trying to time the market just right. We know many of our clients are waiting for the perfect time to buy, but sometimes the information you are looking to in order to see that it's time to invest might not be best. We can help you identify when you should actually be buying a home in Myrtle Beach to leverage as an income property.
Contact us any time to learn more about homes for sale in Myrtle Beach, and keep reading to understand whether you should wait for interest rates to change before buying an investment property.
Opportunity Cost
While it's natural to wait for ideal market conditions, there is a somewhat unexpected consequence for this in many cases. We find that many investors who are financially able to buy, but delay in hopes that market conditions will shift in their favor, end up missing opportunities. Every day you delay your investment is a missed opportunity to build equity and generate rental income.
Owning a property allows you to build equity over time. Rather than waiting for lower interest rates, consider the equity-building potential that comes with ownership. Waiting may mean losing out on the gradual appreciation of property values. Instead, you can begin building equity nowand then refinance in the future if rates are lower.
Myrtle Beach is a popular tourist destination, and investing in a rental property allows you to tap into the thriving vacation rental market. By waiting for lower rates, you delay the potential income stream from renting out your property to eager vacationers.
Historically Low Rates
We know that interest rates in the 2sand 3s in recent years have everyone waiting for them to come back, but the reality is they may not any time soon.Interest rates have been historically low in recent years, making the cost of borrowing relatively affordable even now with rates double what they were in 2021. While there might be fluctuations in rates, the current low-rate environment still presents an advantageous opportunity for potential investors.
Rather than trying to get back to thoseextreme lows, talkwith a few lenders to find out what you can borrow and what your monthly payment would be.Once you have real numbers to work with, you may realize that your investment opportunities in Myrtle Beach arerealistic and potentially profitable, even with the rate you did notoriginally want.
Tax Advantages
Remember that there are a myriad of benefits to owning real estate.Owning an investment property in Myrtle Beach offers potential tax advantages, and the benefits may be well worth the cost of a higher interest rate.
Mortgage interest, property taxes, and certain expenses related to property management are usually tax-deductible for investment properties. Taking advantage of these deductions sooner rather than later can enhance your overall financial position.
Remember, tax policies are subject to change. Waiting for lower interest rates may expose you to potential shifts in tax regulations that could impact the overall financial attractiveness of your investment.
Control What You Can
Ultimately, none of us individually can do much about the market conditions in any given location.However, you do have control over your own finances and the investment timing you choose.The real estate market is influenced by a myriad of external factors, many of which are beyond individual control. Waiting for lower interest rates assumes a level of control over these external factors that may not be realistic.
The most successful investors look to what they can control and seize opportunities when they come, knowing that real estate in general appreciates over time no matter when you bought and what your rates were. Ready to find your Myrtle Beach investment property? Contact us any time.
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We're Here to Help
Feel free to reach out any time:
Brian Piercy, BIC
TheHomeSearch.com
1004 29th Ave N Suite E
Myrtle Beach, SC 29577
O: (843) 984-0703
E: Email Us
Have a Question or Want a Free Market Report?
Contact Us