A growing number of investors have decided to flee the volatile stock market seeking safety, and they will find this in hard assets like in real estate. Nevertheless, many people wish to stay a passive investor, and they don’t want to knock on doors seeking foreclosures and fixing toilets while working as the landlord. A simple search on Google for passive real estate will equate to people becoming the victim of online advertising in a market property known as turn-key rental properties. But what is a turn-key rental property? And is it truly worth your investment?
Turn-Key: What Does It Mean?
To most investors, turnkey sounds like nothing more than a buzzword, and a lot of people throw it around. Many times, the people who throw it around are the new companies that don’t have a definition of what this means. What’s the standard that defines this word? For the uneducated buyer, you might assume that turnkey properties mean that you don’t have to do anything. Don’t let something that looks too good to be true pull you in. The false belief that someone else will renovate, buy, lease and manage the property while all the other people have to do is deposit the rent check is false.
Some companies will sell a turnkey property that will be fully renovated to what looks like-new condition. You will need a property manager who understands how this works. Some companies only slap on a little paint, calling it turnkey. They have hopes that they will attract buyers from out of state.
How Can Investors Protect Themselves
People have to learn how to disregard the marketing in the message. The marketing is what investors have to stay alert to the most. People don’t want good marketers to manipulate them simply because they understand how psychology works. Beware of messages that say, “This is turnkey, and you won’t have to lift a finger.” In addition, investors should go to see the property before they buy it because of what it looks like in photos might be misleading in person.
What’s the bottom line with these investments? Although a may look like it has a cheap and reasonable price, chances are that there will be more work and time you will have to put in. If investors decide to pursue turn-key rental properties, they should always check to make sure that they will be receiving the best price.
After experiencing another long year of rising rent and home prices while going through a declining inventory throughout the country, it is evidently challenging to find a suitable place to invest in expecting to reap reasonable returns shortly. Nevertheless, there are still some scattered sweet spots that can offer investors some much great returns. These cities provide a rare combination of job growth that is better than average.
They also offer some runway before housing is overpriced. Investors who are looking for high-growth markets should try to put their investment in the following cities that have a promising future of good returns in the coming years.
1. Orlando, Florida
Orlando is known as the land of Harry Potter World and Mickey Mouse. In 2017, the housing and home prices of Orlando recorded a hike of 9%. This price increase hit an average of about $247,550 in that year. Interestingly, a Local Market Monitor predicts that these prices are likely to rise with an estimate of 35% from 2018 to the start of 2021. Generally, Orlando city does well when the average American market improves. Optimistic investors should consider investing in Orlando.
2. Provo-Orem, Utah
Provo-Orem was the top newcomer city in the list produced by Forbes for the most promising cities regarding the future of housing prices. The city recorded an estimated average home price of $266,169, a 7.2% population growth in three years, and a 6.7% job growth in the last two years. The city was estimated to have attained a 10% home price growth over the previous year. Moreover, Forbes predicted that the towns home price growth at 31% in the next three years.
3. Ogden-Clearfield, Utah
The Forbes listed Ogden-Clearfield at position five. The city recorded an average housing price of $246,251. Its population was found to have achieved a 5.1% population growth in the past three years. Additionally, Ogden-Clearfield attained 5.7% job growth in the last two years and a 1-year home price growth of 10%. Forbes also forecasted home price growth of 29% in the coming three years.
4. Springfield, Missouri
Springfield city has an average home cost of $154,557, a 3-year population growth of 2.3%, and 5.1% job growth in the last two years. Moreover, Forbes predicted that the home price of this city at 14% in the next three years.
Springfield, Ogden-Clearfield, Provo-Orem, Orlando prove to some of the best cities to invest in housing in 2018. Any of these cities serve as a great option for an investment opportunity for anyone who is looking for a strong return.
If you’re looking to turn some extra cash into profit, you have a multitude of options. Real estate investment is only one of them, and many people enjoy it. While it is a solid business, you might find yourself encountering these common myths when researching this subject.
It Takes a Lot of Money
You don’t have to be a millionaire to become a real estate investor, and you don’t need to be free of debt. Many entrepreneurs make money by finding opportunities and presenting them to buyers who have existing capital. Even if you have only $5,000, you can enter a real estate investment trust and split profits down the line.
You Have to be Rich to be Successful
Thankfully, your level of success doesn’t depend on your existing bank balance. You can choose from three different types of real estate investing: residential, commercial and land. These come in assorted sizes, shapes and price points. Mostly, your skills and knowledge determine the level of success.
You Need Special Certifications
Real estate professionals often function as investors, but it’s because they know the market and deal with properties daily. Their success does not rely on a real estate license. Since any adult can legally buy property, you can purchase real estate that’s in any type of condition for investment purposes.
Real Estate Investing is Time Consuming
People see frantic professionals darting from place to place with a phone pressed to their ear. This makes them think that investing in real estate takes a lot of time. While it is true that engaging in pursuits that lead to profit takes time, it won’t eat up your day.
Consider that many people spend at least three hours per day watching television. What if you used some of that time to research sound investments? Additionally, when you go house hunting, you can involve the whole family and have some fun too.
You Need Experience
Chances are, some people might try to talk you out of real estate investing because you lack experience. However, don’t let irrational fear stop you. While experience improves chances of success, it’s neither necessary nor does it guarantee anything. At one time, everyone is a beginner and will gain experience by practicing.
While there are plenty of myths out there about real estate investing, do not believe them before you conduct some research first. With the right information, you will be ready to take on the world of real estate investing in no time.
When built-ins and fixtures in a home start looking worn and old, it’s time to update.
Homeowners don’t usually think about making changes that can increase the value of their homes until it is time to sell. Then they may be short on cash or the time to make improvements that can add value. The key is to make gradual changes along the way that will keep a home looking fresh and contemporary. Consider the following ways homeowners can increase the value of their homes.
Keep the outside looking fresh
Nothing grabs attention more than a home with curb appeal. Since the outside of the home is the first impression a buyer will make, the outside should be neat and inviting. Keep shrubs and other vegetation under control with regular trimming. Pressure wash concrete surfaces and siding to keep them looking new. Remove dead flowers and plants. When perennials start to get grassy, it may be time to dig them up, clear out the weeds, and start fresh. Make sure wood trim is painted, and clean the cobwebs from around doors, windows, and light fixtures. Curb appeal is usually a matter of regular maintenance and costs very little.
Consider a kitchen upgrade
An upgrade can make the kitchen a place where the entire family enjoys gathering, but an out-dated kitchen can be depressing and a deal-breaker for a buyer. Swap out tired looking white or black appliances for edgy stainless steel. When today’s homebuyers walk into a kitchen, they expect to see stainless steel appliances and granite countertops. Something as simple as s trendy new backsplash can add pop to an otherwise boring kitchen.
Turn a bathroom into a spa
Not only do homebuyers expect kitchens to wow them–clean bathrooms with that spa vibe are also on many homebuyers’ wish lists. If you can’t put in a new shower, consider adding a rain shower head. Clean the tub and shower until it is sparkling. Replace old sink fixtures and faucets with updated versions. Consider adding a new mirror and get rid of the 1990s vanity strip lights. Replace the wallpaper with a fresh coat of paint in a spa-inspired color.
These are just a few simple, and mostly low-cost changes that a homeowner can make to increase a home’s value. Even when a homeowner is not thinking of selling, updates can make a home feel like a brand new living space.