The Wall St. Journal is reporting that investment property sales were up last year. Particularly the sales of single family homes increased last year according to the National Association of Realtors.
One of the reasons I believe this to be the case is that interest rates have remained low. The ability for investors to finance a significant portion of their purchase with low fixed rate financing for 30 years is an incredible opportunity. This type of financing is available for 2-unit, 3-unit, and 4-unit properties as well.
I believe, another reason for the increased demand for investment property is that investors can buy some, not all, properties for below replacement cost. This means that when new homes are built, they will necessarily be more expensive than the investor’s property in order for the contractor to make a profit or break even.
For more information about real estate investment please head over to the Maclennan Investment Group, Inc. website.
If you are interested in buying an investment property in the San Francisco Bay Area, please call me at (925) 385-8798.