Winter is a time filled with warm drinks and cold weather. It’s also the best time to purchase a real estate property. There are fewer buyers and more houses on the market, which benefits real estate investors. Here are four reasons you should consider purchasing a rental property this winter.
Properties stay on the market
In the winter, houses remain on the market much longer than they do during the summer months. In 2017, a home in Atlanta stayed on the market for an average of 62 days during June and 97 days in January. Houses that stay on the market for a long time are often a hassle for sellers, as they have to keep the property maintained and continue to market it for sale. They’re likely looking to get rid of the property sooner rather than later and will be more willing to compromise.
Little buyer interest
During the holiday season, most people aren’t in the market to buy a new home. The holidays are a busy time for most, with shopping to do and presents to wrap. In areas that are prone to heavy snowfall, potential homebuyers are likely just to stay indoors and look for homes another time. Eighty-five percent of buyers stated they planned to purchase a home in the spring or summer. This means that, for the most part, real estate investors have their pick of the market. There’s little competition for pieces of property, which means you’re more likely to get a good deal.
Priced to sell
Home prices are the most expensive during the summer months when people are looking to buy. During January and February, the cost of a single family home is 8.5 percent less than the price during the summer months. Because there’s less competition, sellers want the homes gone and will price them accordingly. If you wait until the winter time to purchase your next investment property, you’re likely to save yourself a lot of money.
Tax benefits
If you manage to close on a piece of property before the year ends, certain expenditures certain expenditures can be written off in your taxes. Financing fees, mortgage insurance premiums, travel expenses, and property management fees are all deductible costs. Sellers also receive tax benefits from the sale of their home, which may motivate them to accept any offer as the end of the year draws near.
Why Winter is the Best Time for Real Estate Investors
