It’s no secret that we’re in a hot seller’s market right now in Culpeper. With the economy recovering from the COVID-19 pandemic and people feeling more comfortable to get back in the housing market, we’ve got a lot of buyers excited to make offers on a limited number of homes. However, there just aren’t that many homes on the market.
With limited supply and a ton of demand for buyers wanting to find their perfect home, we get a hot seller’s market with prices and home values continuing to rise.
For anyone thinking about selling their home, right now is looking like a pretty great time to do so. But would you consider renting out your property instead of selling it? Depending on your personal and financial situations, we think renting your Culpeper property could be a great option for a lot of people. Here’s why.
Demand for Rentals is Increasing
Demand determines a market for anything. Whether it be gas, produce, or houses… without demand, you don’t have a market. So one of the main reasons that you should rent your home in Culpepper instead of selling in 2022 is because of the demand for rentals in our area.
Because of the high prices in the housing market, previous renters aren’t moving out. With fewer rentals listed on the market and more people that are unable to purchase a house because of the steep prices, we get a large demand for rentals, driving prices higher. For someone that can choose to rent instead of sell, this is great news!
One of the best sources of passive income
Figuring out how to earn passive income is one of the hottest ideas out there right now. This is because there are so many remote opportunities that have presented themselves through the advancement of technology.
What lands as most people’s top source of passive income? Real estate. Owning rental homes is one of the best ways to earn money on the side of your full-time job without having to put in 40+ hours a week. Though owning a rental home comes with its fair share of work, the long-term returns rival any other investment you can make. With a hot home buying market comes a hot rental market, which promises great income to the owners of rental properties.
You’ll make more money in the long-term
One of the top benefits for selling your home right now would be to sell while the market is hot and get the best sale price for your home before the market takes another dip. Not only that, but you can liquidate and make some quick cash now. Not bad, right?
But if you take a longer-term perspective, you can actually make more money by renting your home out instead of selling it. Typically, landlords rent their properties out for about 1% of the home’s total value. So, if you have a $300,000 home, you can rent it out for around $3,000 per month. If your mortgage is $1,500, you’re profiting about $1,500 each month (or $18,000/year) simply by renting instead of selling.
Not only that, but you’ll only continue to build equity in your home as its value increases for years to come.
Transform a Debt into an Asset
Whether you sign a 15-year mortgage or a 30-year mortgage on a home, paying off that debt takes a long time. Whether you’re moving because you need to upsize or maybe you got a new job, turning one of your biggest debt liabilities into one of your biggest assets is one of the best investments you can make.
Great Tax Deductions
Not only is owning a rental property a great investment and a great way to earn passive income, but it also comes with some really impressive tax deductions as well. One of the biggest deductions for owning a rental? The interest you pay on your mortgage. That’s right, the amount you pay toward interest on your monthly statement can be 100% written off of your tax statements.
You can also deduct your property taxes from your income statement along with your insurance premiums, any home depreciation that occurs, maintenance and repairs, utilities, and professional fees.
Those are some of the best reasons why we think you should consider renting your property in Culpeper instead of selling in 2022. Rental homes, for most, turn out to be pretty safe investments that can make really good returns. What are you waiting for? With demand for rentals so high, you can start making money on your property in no time!
Get in touch with us today! Call 540.825.8100 or email us at info@vhsmanagement.com to learn more about our property management services. For more updates and information from VHS Property Management follow our blog and find us on Facebook @vhsmanagement.