Four reason why you should consider buying an investment property in the winter.
Reason #1: In the winter the competition frombuyers is less. So that means you are less likely to end up in abidding war over that great investment property. It is true thatinventory on the market is usually down as well but that does not mean goodproperties are not available. Many buyers and investors simply stoplooking to acquire properties during the holidays; so being active during thistime can give you an edge.
Reason #2: New year’s and spring are coming up. While the holiday season may be a slower time for tenant move in’s, the newyear’s always brings an uptick in the rental market. Many people like toor are in need or changing their living situation at the start of a newyear. Professionals may be changing jobs or being transferred to a newlocation for work. The holidays can cause a lot of stress inrelationships and many do not last, which causes couples or split; this meansone of or both may need to find a new rental. While others may simplyjust want to rent a new house for the new year. Whatever the reason theweeks just after the new year is traditionally an active time in the rental market.
If you are purchasing later in the winter after the newyear, then you are already closing on a time that is more active on the rentalmarket then during the holidays. You are also purchasing with spring justaround the corner. Spring is always one of the busiest times of the yearfor the rental market.
Reason #3: It might be best to renovate in the winter andbe ready to rent in early spring. This reason is specific toinvestment properties that require some work after the purchase. Thewinter can be a slower time for contractors and therefore you are more likelyto get work done faster and for less. Painter for instance can havehigher rates in the summer months as they are booked doing exterior painting,that means if you need a full interior repaint done you have more availablepainters to choose from. This should result in better pricing for thework. The same holds true for many other trades, such as roofers,carpenters and general contractors.
Reason #4: You can see how the house is holding upagainst harsher elements. Buying a home during the winter means youwill be doing your home inspection during the winter. That will mean morerain, or snow, more wind and all-around harsher elements. This will letyou clue in on where the roof is leaking or if you have water issues in thecrawl space. Some issues like water in the crawl space may not be able tobe known if you are doing your inspection and things are dry, like they areduring the summer.
Remember too that when you located a home to purchase as aninvestment property you will also have time to factor in for closing thepurchase. If you are using traditional financing options and goingthrough an inspection period, you will most likely have around 30 days fromwhen your offer is accepted to when you are in possession of theproperty. This means if you buy a home in December you most likely willnot have it available to rent until January, even if the property is completelyready to be rented [also called “turn key”].
If you are considering adding an investment property to yourfinancial portfolio then please do not discount buying in the winter. If you wait you could be losing out.
SJC Management Group is a local family owned real estate company who has specialized in Property Management and real estate investment sales for over 40 years. Our professional, full time, staff and agents are here to assist you with your real estate, and property management, needs. Whether you are an owner or a tenant, working with the professionals at SJC will simplify the rental process.
Areas of Service: We manage rental properties in Washington State throughout most areas of Pierce County and South King County including; Tacoma, Puyallup, Bonney Lake, Lake Tapps, Sumner, Orting, Spanaway, Graham, Edgewood, Buckley, Enumclaw, Auburn, Kent, Federal Way, Milton and surrounding areas.