Here’s a financial truth that no one can deny: As interest rates go higher, as they steadily have done over the past several quarters, mortgage rates follow in lock step. From prior experience, Baltimore County rental property management companies know what often follows this trend – a spike in demand for rental units. Because many prospective homebuyers can’t afford to buy new homes just yet, they flock to find rental housing. And there lies an opportunity for investing in Baltimore’s rental housing market.
Why Choose Baltimore?
The simple answer: Opportunity and valuation! Few real estate markets promise to deliver rental property value, over the foreseeable future, like Baltimore can. And rental management companies in Baltimore Maryland see another interesting dynamic at play in the County’s rental housing market, that makes investing in it now a good idea.
According to the Zillow Home Value Index, the value appreciation in properties has been relatively “tame” over the past year (graph to the left). However, when viewed over a 5-year period (graph to the right), that price appreciation is phenomenal! The longer-term appreciation demonstrates value potential, while the shorter-term gradual price rises offer prospective opportunity to get into the market now!
What’s the Alternative?
So, what’s the alternative to investing in Baltimore? Just nearby, Zillow’s Home Value Index for Washington show that prices in the D.C. metro area rose (Jul 2017 $518k to Jul 2022 $707k) by 21.69%. However, when Baltimore County rental property management companies do a same-period comparison for the County, the price gains are stark – from $146k to $205k. That’s a 40.41% increase. Clearly, on a return on investment (ROI) metric, Baltimore makes a better investment opportunity than other neighboring markets.
Then, why wouldn’t prospective investors simply buy property, and then sell the units outright? Well, if you are a serial property flipper, then perhaps that’s the way to go. But the challenge is, there’ll be serious tax implications every time one buys and sells the property. Secondly, buy-sell strategies don’t assure investors of a steady stream of passive income – which is one of the major reasons investors favor rental property investing.
Doing it Right
The “magic” in making rental property investments work, however, is in building a team of professionals who know what they’re doing. Unfortunately, unless you are a professional investor, building a team with those diverse skills and experiences might be extremely costly – and cumbersome. Few investment opportunities deliver to their potential without in-depth local insight. Whether you are someone from outside of Baltimore, looking to invest in the County; or whether you are local to the County and whish to explore rental property investing options – working with a local partner helps.
From an intimate understanding of local rental property by-laws, to tapping into a vast network of rental property service providers, such as landscapers, renovation contractors, and City Council representatives it’s the value that rental management companies in Baltimore Maryland bring to that relationship that makes an investment thesis worth implementing.
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