The economy has taken some pretty bad hits lately. The only thing most people are sure about is that the economic environment is unpredictable. For most investors, the recent downturn of the economy can have an immediate, negative effect on their investments. Real property investments, however, don’t need to react the same was as stocks to the economic fluctuations. Second home owners can rely on a dependable rental income.
While the economy and the stock market might be on a rollercoaster, the employment rate has stabilized at 5.5 percent. The number of unemployed people went down by 1.2 percentage points or 1.7 million people, according to the latest numbers provided by the Bureau of Labor Statistics. That is great news for real property investors. Stable employment means you can bank on having steady, established tenants. As long as the tenants are employed, second home owners can rely on Phoenix Property Management to collect a steady, stable second home income.
The economy is slow and people are not making the over-the-top salaries that characterized the late 90s early 2000s. This does not mean that rental rates have to be so low that you as an investor are no longer meeting the second mortgage or making a profit. 2015 is the year of increasing minimum wages. This will have a trickle up effect of raising everyone’s overall salary. True, other factors, like inflation and cost of living, will equalize this salary increase; but you can still benefit from it. Cost of living will balance out the higher salaries, which means you can afford to ask for more. You can expect a property management phoenix to continue to find a plethora of tenants willing to pay a reasonable rental fee. This is because minimum wage increases make tenants will feel they can afford to pay more. So even thought the economy isn’t as strong as it used to be, the rental owners economy is going strong.
Phoenix is one of the fastest growing cities right now. The economy may not be great, but Phoenix doesn’t seem to be hit as hard as other cities. In order to cash in on the real estate market while home values are still down, investment in good rental services like phoenix property management will secure market position before the market turns around soon.
Rental owners are not as affected as single property owners by the lower home values. Why? Because rental owners rely on phoenix property management to charge a predetermined rental rate that is linked to job security instead of home value. So while the average home owner, who may be trying to refinance their home, is upset that the price of their home is still higher than current appraisals; second property owners should not be as worried. That doesn’t mean that the real estate market has no effect on rental owners. Neighboring real property values determine how profitable the area is. Surrounding development like office buildings, restaurants, entertainment, and parks will also influence the overall value of the second home investment. Hopefully you’ve purchased a property that is strategically positioned to bring in profits long into the future.