Knox single-family rentals
Headlines everywhere are reading “the single-family rental sector is having its moment.”
According to a recent report by Arbor, 2021 property investment is thriving in the post-pandemic market. The pandemic’s disruption ended up propelling single-family property investments to new heights. As more and more people are migrating into single-family homes, the demand has soared — even setting a generational record.
By the time 2020’s third quarter rolled around, the occupancy rating increased by 100 basis points to 95.3%. According to the report, this marks the highest occupancy rate for single-family rentals since 1994.
The data forecasts a bright future for the single-family rental market.
So, what does this mean for homeowners who are on the fence about what to do with their properties?
Anyone who has been stuck between deciding to sell their homes or keep them as an investment rental should consider the benefits associated with owning an income-producing property.
The experts at Knox Financial always say to never sell your home.
Don’t Overlook the Drawbacks of Selling
Homeowners need to look at the realities of selling that are below the surface.
When you sell, homeowners are trading a single lump-sum payment versus a lasting stream of wealth. Not only do sellers lose out on their home’s equity, but they also pay for the sale itself. Selling a home is an expensive process. According to Bankrate, the average U.S. seller pays 10% of the sale’s earnings towards fees, commissions, and other costs. This means that many sellers don’t walk away with as much as they expected to.
Ultimately, the decision to sell your home means you’re losing out on the potential long-term value that a property can offer homeowners.
3 Benefits of 2021 Property Investment
Instead of accepting the drawbacks associated with selling, the better solution for homeowners is to keep their property as a single-family investment property.
Generate Passive Income
Instead of selling, put your home to work for you. When you turn your home into a rental, your property can become a passive source of income. Homeowners that convert their homes into single-family rental investments gain access to a dependable stream of rental income.
Whether this additional income supplements your wealth, builds your savings, or supports you through big life changes, investment property ownership is a viable way to help people meet their financial goals.
Create Generational Wealth
Besides just helping your bank accounts grow, income-producing properties have the potential to continue serving your family even after you’re gone. When you keep your home as an investment, it can become a vehicle to build generational wealth. As your investment builds equity over the years, your family will be gaining access to greater financial stability.
They can continue collecting rental income or make the property their own home. Either way, your decision to keep your home and pass it on will benefit your family for generations to come.
Stable and Secure Investment
Whether you already have an investment portfolio or this is your first asset, real estate investment is a stable and secure way to generate returns. Property ownership has long been recognized as a dependable investment choice, unlike volatile options like stocks and bonds.
Adding an income-producing property to your investments can provide greater leverage to your assets.
2021 Property Investment with Knox
These benefits are always present in the field of single-family property investment. However, 2021’s market circumstances are pushing these benefits into overdrive. Today’s demand for residential rentals is booming, making it a wonderful time to take the leap towards income property ownership.
If you’re ready to learn more about owning a single-family rental, let Knox Financial be your guide.
Knox upends traditional property ownership by solving many of the pain points associated with operating a real estate portfolio. Knox Financial makes it ridiculously easy to own a market-beating investment property. When you choose to work with Knox, we do all the hard work for you while you watch your bank accounts grow.
If you’re curious about how well your home will perform as an investment property, get the insight you need with Knox’s Property Calculator. Click here to instantly find out what your home is “really worth.”
Get in touch with us at Knox to take the conversation to the next level. As the first wealth advisor for property owners, we’d love to discuss your specific situation. Give us a call at 866-448-7608.