Top Tips When Buying Investment Property in Plymouth
Are you planning to buy a rental property in Plymouth, MA? Since Massachusetts is one of the most lucrative real estate markets in the United States, investing in the Plymouth rental market is a great idea.
Currently, Massachusetts is home to more than 6.8 million people. It ranks as the 15th most populous state in the US. Massachusetts also boasts a thriving economy.
In fact, from April 2021 to April 2022, the state gained around 178,400 new jobs. The industries that saw an increase in job markets are leisure and hospitality, education and health services, as well as scientific, professional, and business services.
Due to the rising job opportunities, Massachusetts has become a desirable place to live, and its real estate market saw a considerable surge in demand. This is one of the reasons why many real estate investors are eyeing the Bay State for their next investment.
Massachusetts offers housing from all price points. One of the more affordable areas is Plymouth. Here are some of the reasons why you should consider buying an investment property in Plymouth:
Plymouth is home to more than 61,000 residents, with a median household income of $92,757. This is higher than the US average of $64,994. Because of this, a lot of people are moving to Plymouth to take advantage of its good economy. This creates a surge in demand for housing, especially for rental properties.
Massachusetts real estate can be considered expensive, with a median home value that is higher than the US average. However, Plymouth offers more affordable options for both homebuyers and real estate investors. Currently, the median home value in Plymouth real estate is $495,553, which is significantly lower than the state average.
Stable Appreciation Rates
Even though Plymouth has affordable housing options, its home values are appreciating annually at 3.72%. This means that if you own a property in Plymouth, you can expect to see your property increase in value over a few years. This is good for investors who plan to buy, rent, hold, and sell.
Many Housing Options
Since Plymouth dates back to 1620, you’ll find properties from different eras, with a variety of architectural styles. You’ll find Georgian homes, federal-style houses, Gothic Revival homes, and Colonial Revival homes.
The most common type of housing in Plymouth is single-family, which makes up around 72% of Plymouth houses. You’ll definitely find a home that suits your style and preference.
As mentioned, Plymouth has a growing population, which will subsequently increase the demand for rentals. Many people are also moving to Plymouth due to its thriving economy and better living conditions. This opens doors of opportunities to real estate investors planning to invest in the Plymouth rental market.
How to Find the Best Investment Property in Plymouth
If you are planning to invest in the Plymouth rental market, it’s crucial to find the right investment property that will generate the highest possible profits. To do this, you have to keep the following tips in mind when buying a rental property in Plymouth:
1. Study the Market
Before anything else, it’s crucial to study and analyze the rental market. Know the demands from renters, how high the occupancy rates are, and what type of properties are usually rented out.
By knowing these details, you’ll find the best local market for your investment plans. Conduct a real estate analysis so you’ll know if such an investment will be worth your time and money.
2. Choose Which Neighborhood to Invest In
Safety: Plymouth has a lower crime rate than the US average. When choosing an area where to buy a property, make sure to consider its safety.
Amenities: Amenities such as school facilities, medical and financial services, and public transport or walkability are essential factors that can affect your occupancy rate. Most tenants would want to stay in an area that is convenient and comfortable.
Job opportunities: Buying an investment home close to areas where there are more job opportunities is an excellent idea. This can help you attract working-class renters who want to stay in a location close to where they work.
3. Plan Your Budget Carefully
When you have chosen a location, make sure to plan your budget well before you buy any investment property. Setting a budget can help you determine how long it would take for you to start seeing returns. Your budget should include the purchase price, as well as the renovation costs.
4. Perform the Necessary Renovations
To make your rental home stand out among the competition, it’s essential to set aside a budget for necessary renovations and improvements. However, make sure to not go overboard with home improvements and to strictly stick to your budget.
Avoid making unnecessary improvements just to beautify the home. Since this property is intended for business, you have to plan your renovations thoroughly and only perform those that will improve the value of your property. Stick to what you can afford and do not make renovations that will not offer a return.
5. Talk to a Professional Rental Property Manager
Whether you are an experienced rental property owner or this will be your first investment property, working with a professional rental property manager can help you achieve your financial goals faster. It can also help lessen any stress related to owning and operating a rental business.
Plus, professional property managers have extensive experience and are quite knowledgeable about the local market. You’ll need their expertise to make informed decisions that can help you maximize your profits.
If you’re in need of a property manager in Plymouth, contact Howzer Property Manager at 508-298-6785 and we’ll be happy to serve you!