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What Are the Advantages of Owning A Multifamily Property?

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What Are The Advantages Of Owning A Multifamily Property?It is important for everyone to diversify their investments. One of the ways to do so is to invest in real estate. There are numerous types of properties, and one of the most attractive options is a multifamily property. Even though it might seem like a challenge to manage such a large property, there are several benefits of multifamily properties everyone should keep in mind.

Hiring A Property Manager

One of the first advantages of purchasing a multifamily property is the potential to hire a property manager. With more families living in the building, it might be worth it to pay a property manager to handle a lot of the day-to-day tasks. Residents might have questions, and property maintenance is critical. The right property manager can handle a lot of these responsibilities.

Generating Passive Income

By hiring a property manager, it is possible for real estate investors to generate passive income. With the property manager handling just about everything, real estate investors will be free to work another job, identify other properties, or focus on their retirement. This passive income can be used to cover mortgage payments, real estate taxes, and homeowners’ insurance. A smart investor might even use the income generated from this property to purchase another one, starting the cycle again.

Taking Advantage Of Tax Write-Offs

It is true that there are a lot of expenses that come with owning a multi-family property. Examples include maintenance expenses, repair bills, insurance premiums, real estate taxes, and marketing costs. Fortunately, a lot of these expenses could be tax-deductible. This could save property owners a significant amount of money. Of course, anyone who is interested in exploring the tax advantages that come with owning a multi-family property should reach out to an experienced tax professional for assistance.

Consider Owning A Multifamily Property

These are just a few of the many advantages that come with owning a multifamily property. Even though there might be a larger upfront expense, there are numerous advantages that a multifamily property might provide. There are potential tax advantages, an opportunity to delegate responsibility, and a consistent flow of passive income. Those interested in real estate investing should explore the opportunities afforded by multifamily housing.

What Are the Best Options for Today’s First-Time Homebuyers?

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What Are the Best Options for Today’s First-Time Homebuyers? | MyKCM

If you’re looking to buy your first home, you’re likely balancing several factors. Because both mortgage rates and home prices have risen this year, it costs more to buy a home than it did even just a few months ago. But that doesn’t mean you have to put your plans on hold.

If you partner with a trusted real estate advisor and hone your strategy, you can navigate today’s market and find the home you’re looking for. Here are two tips to help you get started.

Work with a Professional To Prioritize Your Wish List

If you’re having trouble finding a home in your budget that checks all the boxes, it may be worth taking another look at your lists of what you want and what you really need. According to the latest First-Time Homebuyer Metro Affordability Report from NerdWallet, your wish list can have as much impact on your search as your finances:

“Your budget isn’t all that you need to be concerned about; your wish list and desired location may carry just as much weight.”

It’s all about prioritization. If you’re serious about purchasing your first home soon, be flexible in what you’re looking for to open up your pool of options. Partner with a local real estate professional to better understand what’s available in today’s market and reprioritize your wish list. Remember, making a concession now doesn’t mean you’ll never have everything on your list. After you’ve moved in, you can always add certain features to make the home your own.

Increase Your Search Radius To Consider More Locations

Some areas may have more homes within your target price range than others, but it may require you to be flexible on your location. For example, if you’re a remote worker, you may be able to expand your search radius. As Fannie Mae explains:

“. . . continued remote work flexibility is likely giving many the ability to live farther away in more affordable areas.”

The decision to search in places with a lower cost of living could help you find a home that fits your budget and checks the most boxes off your wish list.

Bottom Line

If you’re serious about purchasing your first home this year, revisiting your wish list and desired location can help. Let’s connect to explore all the options in our local market – and beyond – so you can achieve your homeownership dreams.

What’s Ahead for Mortgage Rates This Week – June 13, 2022

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What's Ahead For Mortgage Rates This Week - June 13, 2022

Last week’s economic reporting was highly focused on inflation, which grew at its fastest pace since 1981. Rising fuel and food prices boosted inflation in the U.S. and abroad; Analysts said the Ukraine War and supply chain problems continued to drive inflation. Weekly readings on mortgage rates and jobless claims were also released.

Inflation Hits Highest Level in 41 Years

The government’s Consumer Price Index, which tracks inflation, rose at a month-to-month pace of 1.0 percent in May compared to the expected reading of 0.70 percent and April’s reading of 0.30 percent growth. May’s Core Consumer Price Index, which excludes food and fuel sectors, rose by 0.60 percent month-to-month.

Year-over-year readings for inflation also increased in May as inflation rose by 8.60 percent compared to an expected reading of

8.30 percent growth that matched April’s reading for year-over-year inflation. The year-over-year core Consumer Price Index rose by 6.0 percent in May compared to expectations of 5.90 percent and April’s year-over-year reading of 6.20 percent growth in consumer prices. Consumers felt the most pain paying higher rents and dealing with rising food and fuel prices. These categories represent a significant portion of household expenses and there was no immediate relief in sight. The Federal Reserve plans to raise its key interest rate range every month as it attempts to slow rapid inflation.

Mortgage Rates, Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week as rates for 30-year fixed-rate mortgages rose by 14 basis points to 5.23 percent; rates for 15-year fixed-rate mortgages averaged six basis points higher at 4.38 percent. Rates for 5/1 adjustable rate mortgages loans were eight basis points higher at 4.12 percent. Discount points for 30-year fixed-rate mortgages averaged 0.90 percent and 0.80 percent for 15-year fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged 0.30 percent. Ongoing shortages of available homes and rising materials costs continued boosting home prices and eroding affordability for first-time and moderate-income home buyers.

Initial jobless claims increased last week with 229,000 first-time claims filed compared to the prior week’s reading of 202,000 initial claims filed. Continuing jobless claims were unchanged last week with 1.31 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on housing markets, building permits issued, and housing starts. The Federal Reserve’s Federal Open Market Committee will release its post-meeting statement and Federal Reserve Chair Jerome Powell will give a post-meeting press conference. Weekly readings on mortgage rates and jobless claims will also be released.

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