Real Estate Investing Advice – Track Sales and Rental Trends

There are many people who after getting are involved in some financial crunch, and so they want to sell off their house immediately but they don’t want to move out of their houses. If you are one of them and looking for some means to stay back in your own house, you can enter into the sell and rent back agreement. Let’s discuss the entire procedure and information regarding sell to rent back principles to help all those in need. Here’s a good real estate investing tip. Sales trends and rental trends are leading indicators of rising or falling investment property prices.

The concept of sell and rent back

What it means is that you can sell the house and transfer the property title into a new owner. Then you can sign a rental agreement with the new owner. Hence, you now become a tenant and not an owner. This means can bring you out from the financial crises and at the same time, you can occupy the same property as tenant.

The procedure of sell and rent back

For such procedure, you need to search for some Hua Hin Property For sale, who generally handles these kinds of transactions. This will help you to save time on searching for new home and relocating. There are many real estate agents, who have buyers approaching them for this kind of deal. A reputable property agent will surely guide you in the entire process. These agents generally have some investors, who are ready to buy a home and then put it up for rent immediately. These investors want to start their income as soon as they invest. A reliable agent will take only few weeks to get the entire process done. Moreover, you get the entire value of your property within 24 hours of the sale. This will help you in clearing the financial liability on your shoulders. Now, when your house is sold off, you need not have to relocate; but instead have to sign only the rental agreement.

Reasons of sell and rent back

Beside the financial crises, there are many more reasons to sign this agreement. Some of these are as follows: People who are not capable enough to pay the home taxes can go ahead with this type of agreement. It can also be useful for the people, who could not maintain the property but still want to live in it. It can avoid bank from repossessing the house. It is beneficial for all those who can not afford to pay increasing insurance charges and taxes. It would be a good idea, therefore, to create a system for tracking and recording trend data such as the number of listings, new housing starts, selling prices, time on market, rent levels, and vacancy rates when you begin real estate investing. You might be surprised. As you watch these sales and rental trends, you will be able to detect market changes as they occur and might make a profitable short-term gain. Watch for the time properties are sitting on the market. In slow markets, properties can sit unsold for months, and the result could mean price decreases. Likewise, as the average time on the market falls, say, from 270 days to 180 days to 120 days, prices are about to go up. Watch for the number of properties for sale. Real estate prices result from supply and demand. As the number of “for sale” properties increases, thereby inventory increases, and the result could mean sellers lower their prices to attract buyers. Similarly, a minimal number of “for sale” properties signal a lesser inventory and points the way to what could be rapid advances in property prices.

Rental Market Trends

Watch for and review these four important rental market trends for the past 12 to 24 months: Are vacancy rates falling or increasing? How long does it take to fill vacant apartments or rental houses? What types of units rent the quickest, i.e., one or two bedrooms, one or two baths, with or without covered parking or community center? How do vacancy rates differ among various neighborhoods and communities? Do some types of buildings or units enjoy waiting lists? If so, what are their features and locations? What about rents, are rents steady or increasing? What about rent concessions, are property owners giving concessions to attract tenants, and if so, what are they giving away? Watch for foreclosures in your area. Homeowners who lose their homes become renters, in turn causing a shortage of apartment units that results in increased rents; thus, higher property prices. What about interest rates, bear in mind that low interest rates means that many tenants who are one pay check away from buying a home vacate the rentals, and vice versa. Of course, in our current economy, with lenders tightening their loan qualifications, this rise and fall in interest rates might be less telling. Nonetheless, interest rates should be monitored. It’s all just a barometer. But it’s a smart real estate investing procedure to watch and record real estate sales and rental trends as an indicator or rental property prices. Whether you’re a rental property investor or current owner, understanding how sales and rental trends affect property prices and positioning yourself to react quickly can mean you score big.

 

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