The process of purchasing a rental property involves a lot of significant factors you need to consider. Location, expenses, mortgage, exterior, and interior are just some of the key physical things most buyers often focus on. However, have you considered when to purchase a rental property in the first place?
So far, the answer to this question is actually straightforward. Once the weather starts to turn cold, this is the perfect time to purchase a rental property. This means, that the holiday season, starting from the month of November to January, is the perfect time to shop for a rental property. In fact, Christmas Day is often considered the best time of the year to buy a rental property.
What makes winter or cold season the best time to purchase a rental property, then?
There is Lesser Competition
Summer and spring are the months when most people choose to move to new homes. This is because moving around is easier when the weather is warmer. It is also the time of the year when there is higher competition.
But when the season turns colder, the conditions also change, and fewer people buy properties as a result. The lesser competition will make negotiations work more likely in your favor, letting you secure a better deal with lesser stress as well.
Sellers Simply Hope to Sell
The holidays have fewer buyers that might not be good news for sellers of properties that have been sitting in the market for a long time. These sellers might no longer want until next spring for potential buyers. This is why they try selling off their property at the soonest time possible. Once again, this sense of urgency can make the negotiations work to your advantage.
Lower Temperatures Mean Lower Prices
When temperatures drop, there will be less competition but more desperate sellers that will all lead to lower prices. In fact, even without such effects, prices of properties usually drop when the year comes to an end, particularly during Christmas. The general rule of thumb in real estate is that it becomes cheaper to buy a rental property when the months get colder.
Some Potential Downsides to Remember
While the colder months are the best time for buying rental properties, you still need to consider some downsides.
For starters, there might not be a lot of available properties for you to choose from. With more sellers enjoying their holidays, the market might have a lower number of properties with decreased diversity a well.
The snowy and wet conditions may also hide some issues of the property. Remember that properties tend to look different at different times or seasons of the year. You need to factor this in when purchasing a rental property. While the property may look great during colder months, its appearance may change when the warmer months kick in.
To save yourself from unwanted surprises, don’t forget to check the before and after photos of the property. Make sure you also conduct a thorough inspection prior to signing the dotted line.
Now that you know when to purchase a rental property, always weigh in all the factors to make the right decision.