Why You Should Buy Your Rental Property at the End of the Year
You can absolutely buy your new rental property whenever the time is right for you. Maybe that time is now, maybe it is not. However, if you are looking to make a smart business decision and increase your investment portfolio, you are going to want to attempt to purchase your rental property at the end of the year. Here’s why:
The tax benefits
If you run your investment purchases through a business, you are likely to encounter great tax breaks. This definitely applies to the value and depreciation of the property. Reviewing your financial health as the year-end approaches can allow you to see if spending the time and money on purchasing an investment property can benefit you and your company.
Discuss these benefits in detail with your accountant to see if they will apply to you.
Mortgage rates are going up
While mortgage rates are currently low, there are many financial analysts predicting that the mortgage rates will begin to increase as we head into the new year. Therefore, while the rates are low, it is time for investors to act. If you are looking to get involved in rental property, now is when you will want to consider purchasing – not later!
Do a review of your local market to determine if the rates are on the upswing, rather than the downswing.
House values are at a high – and so are the prices
Prices of houses are increasing and so are their values. This steady increase does not show signs of stopping either. If you want to get in on the action, you are going to want to act fast.
Now is the time to move forward
Buying property at the end of the year usually leads to better deals. People who have been holding onto the property generally want to unload it as the end of the year approaches, in an attempt to avoid starting the new year with a huge sale and income on the books.
You will likely be able to get sellers who are more willing to negotiate pricing and move quickly with the closing.
So, how do you know if buying now is right for you?
Take some time to decide whether buying a rental property at the end of this year makes sense for you and your investment portfolio.
- Review your financial portfolio
- Review the availability in your area
- Do an analysis of your local market
- Talk with your accountant and discuss the pros and cons of such a purchase
Making large purchases at the end of the year is common. And, with our market finding itself in better shape than it has been in for quite some time, purchasing rental property could be a wise decision for you. The market can change in an instant – so don’t delay!