Buyers Look to Local Investment Properties during Economic Downturn
With the obvious challenges in the economy and a very volatile stock market, many investors are looking to diversify portfolios, and some say real estate may be the answer. “Until very recently, mortgage interest rates for investment properties (rentals) did not follow the tumbling trend we’ve seen for a primary residence mortgage, said Trey Powers, a mortgage consultant with City Bank in Dripping Springs, Texas. “The great news is, that has changed, and we now see investment rates knocking on all-time historic lows. Those who buy rental properties had been sitting on the side, but are now diving in. The time is right for sure.”
Analysts agree, noting the fact that real estate has historically proven to be a great way to protect assets, particularly when the economy is suffering. The payoff will be both long term appreciation and possibly cash flow. That’s more good news for the local Hill Country housing market. Though nationally the industry has seen a marked decrease in sales, the Dripping Springs area has seen a slower decline, indicating a better than average landscape for future sales, including investment properties.
“The fact that many of our local investment properties are vacant also gives buyers peace of mind,” says Little. “People are more willing to look at a property in person when they don’t have to worry about social distancing measures.”
Though stay-at-home orders are starting to ease, every market is different. For the potential investor, the best resource during this time is an experienced real estate agent who can help them navigate the investment property market. To learn more about available properties in the Texas Hill Country, contact The Lisa Little Team at 512-605-9590, or send an email.