Tag Archives: apartments

Apartment Rents in the U.S. Become Cheaper Due to Rich Tenants

An Apartment BuildingMore rich Americans joined the tenant population between 2012 and 2015, which led to a fewer number of households that are struggling with high rental fees, according to a report from New York University’s Furman Center for Real Estate & Urban Policy.

The 2017 National Rental Housing Landscape report showed that the percentage of rent-burdened households in 53 cities fell from 48.9% to 47.7%. It defined a rent-burdened people as those who spend more than 30% of their income for monthly payments.

Wealthier Occupants

Sewin Chan, the report’s co-author, suggested that the entry of rich families into the rental population may be causing a spike in rents. This allowed property landlords to increase fees on units without risking payment defaults. In 2015, there were 21% of households that earned at 120% of the area median income — that's up from 15% in 2006.

However, the recession’s impact still lingers as renters who wish to own homes continue to struggle in buying their first property, according to Alanna McCargo, co-director of Housing Finance Policy Center at the Urban Institute. In addition, the National Low Income Housing Coalition said that more than 7 million affordable housing units remain unavailable for the poorest Americans.

Rental Investments

Several foreclosed homes from the recession have been converted into rental properties, such as a Section 8 real estate investment. Wealthy renters are not eligible for Section 8 housing, as it caters to low-income tenants.

However, one of the benefits of this type of investment includes regular payments since the vacancy rate is often quite low. Tenants are also required to maintain the property, which protects your asset in case you decide to invest in Section 8 rentals.

Rental prices may have fallen, yet demand for low-income housing still remains high in the U.S. This situation presents an opportunity for real estate investors to unlock growth opportunities in the rental property sector.

 

Should You Invest Your Money in an Apartment in Perth?

apartments in Perth

apartments in PerthAny purchase is an investment opportunity. This is why you have to be careful and mindful of your purchases. When you invest, you need to do it smartly. Do not wait for the perfect deal that may never come; do a thorough financial analysis and find a good property.

Choose a property that has a very high return on investment. Apartments in Perth are among the best investment opportunities in the market today.

Prime location

Even if you are simply buying for your own use, prime locations are still your best bet. If properties in these areas are not available by the time you decide to make a purchase, find nearby locations. The prices may be lower, but the proximity to prime locations give properties a high return on investment. By investing in these, you save on the purchase while getting a highly valued piece of property.

Renting it out

According to Executive Apartments, apartments in Perth have a high rental value because of the prime location and the quality of the apartment itself. With this in mind, you can raise the price of rent to get more income. You have the option to manage the rental property or hire a property manager.

Opportunity for management rights

Investing also comes in the form of acquiring management rights. As the resident manager, you act as caretaker of the properties of non-resident owners and the common property. Not only will you reside in the complex, you generate income from it as well.

These are the reasons why you should look into investing in apartments located in the Perth area. You will have a highly valued property as you open doors for great investment opportunities.