In the wake of a volatile economy, no doubt you have been asking yourself if it was time to diversify your finances and build your peace of mind by venturing into new areas of investment.

If this is true of you, now is a great time to consider investment property. From it, you can generate passive income, beat inflation, balance your portfolio, and take advantage of tax breaks.

At Trustworthy Title, we have a front row seat to the ebb and flow of the real estate market, and we’ve seen the long-term value of investing here for a sound financial future. 

What Constitutes an Investment Property?

Investment properties come in a variety of shapes and sizes, from houses for vacation rental to industrial warehouses, and can be purchased by individuals, partners, and corporations. Property investments can be short term commitments, such as houses bought for upgrading and flipping, or long-term development and management. Regardless of the type of investment property you choose, the end goal is the same… to benefit financially from a real estate venture. 

What Are Your Goals for This Investment Property?

No major financial decision should be made without sound reasoning and a clear vision for your investment. What are you hoping to gain from your investment property? Do you wish to rent it out to full time tenants? Would you prefer to upgrade and modernize it and list it for sale again in the summer? Make a list of your goals, including the amount of time, duration, and effort you’d like to pour into this investment. These goals are your personal guidelines to help you narrow the pool of potential properties and to help you stay true to your “why” as you face competing opportunities.

Investment Property

Do It Right the First Time

Investment property can be a great way to improve your portfolio. Because it is inflation resistant, you can rest easy as the economy naturally ebbs and flows, knowing that in the long term, your investment will yield positive results.

However, deciding hastily and without doing your research could prove a costly trial-and-error approach. When you are deciding what sort of investment property is right for you, be sure to do it RIGHT.

The Right Place

Location is key! Look at the demographics of the neighborhood in which you are considering making your purchase. Is it an up-and-coming area, or has it seen better days? Does the area appeal to young professionals? Families? Retirees? Look for areas that are easily accessible, have desirable community features, and offer realized or coming soon features that allow for a great quality of life for its residents. Of course, if you are looking for a house to flip, your buyers are likely to be looking to settle and live in that home full-time, whereas if you are looking for a vacation rental, you’ll want to be in the heart of the city with easy access to attractions, restaurants, and transportation. Your “right” place to invest has much to do with the vision you have for your property.

The Right Time 

Interest rates are falling, ever so slowly, and the economy is gradually recovering from the astounding inflation we were experiencing a year ago. Conditions for buying are improving for those who need a mortgage, but if you are a cash investor, you have the tremendous advantage of not being impacted by rising or falling interest rates. 

If you haven’t taken time to evaluate your current- and imminent- financial needs, be sure to do so before making the investment. Are there life-stage considerations that might add to or detract from the timing of your investment? For instance, if you’ve recently received an inheritance and wish to invest it wisely, real estate is a great option. If you’ll be sending a child to college next fall, the timing may not be so advantageous. 

The Right Property

Depending on the area of town in which you choose to invest, the type of property you can buy may be determined for you. In general, there are three categories from which to choose: residential, commercial, and mixed-use. In modern urban development across the nation, mixed-use space has seen a tremendous resurgence, especially among young professionals for whom the idea of living, working, and playing in one community is especially appealing. 

As an investor, mixed-use developments can provide great security, due to the multiple streams of income they generate. Additionally, they have performed increasingly well in recent years, yielding greater ROI than single-use properties. If the trend of surging demand continues, you can expect even greater returns on such an investment. 

Market Insights

For expert insights into investment properties in the area and local trends and demographics, local real estate professionals can provide a wealth of information and insights. By talking with an agent, you can clarify your investment goals and the type of property that would help you achieve that goal. Additionally, the agent can utilize databases and networks that you may not be privy to in order to find that perfect place to invest. 

Currently in Omaha, the real estate market is showing moderate growth. The median sales price of homes has increased 3.8% since last year, and the number of homes sold increased by 5.4%. Great properties are selling quickly, on average lasting on the market for just under two weeks. As the cost of living continues to increase nationwide, cities like Omaha, with a cost of living calculated at 7% below the US average, are attracting buyers and businesses looking to combine quality and affordability. This data suggests continued growth, which means appreciation for investment properties you choose to purchase in the area. 

A Sound Financial Future

As you continue to plan for a secure future for you and your family, investing in real estate can be a profitable, inflation-resistant route to peace of mind. When you’ve found the property that is right for you, give Trustworthy Title a call; we’re here to help with all your title needs.