Today we’re talking about the most beneficial strategies for your real estate investments in 2016. Taking a look at your portfolio for the coming year will help you make a lot of decisions that will benefit you for the long term.
If your investment property is part of your retirement package, meaning that your property is paid off and there is no cost to the property itself aside from the maintenance and management and it has become a cash cow, you may want to hold onto it for a longer time.
During an election year, interest rates tend to be variable. They can go up or down depending on what is happening in the market. Keep an eye on the interest rates so you can decide if it’s a good time to refinance the rental property, or if you want to hold onto the interest rate that you currently have.
Another thing to watch is the real estate market itself. If the property values are appreciating, many investors will decide to sell their properties. Some individuals that became reluctant owners during the market downturn now see enough appreciation in their property value that they can go ahead and sell their homes. When real estate is being sold in the market, the properties are being purchased by owner occupants. Taking that property out of the rental market will create a shortage of supply. This translates directly to higher rental prices.
Upgrades and Improvements
To get a higher rent, evaluate the property as a whole and make minor upgrades so you can justify an increase in the rent you charge.
Take a look at your entire portfolio and watch the interest rates and the market. If you’d like additional information on how to get your portfolio to perform well in 2016, please contact us at New Bridge Management in the Modesto area.