In the midst of a global pandemic, it may seem ridiculous to say that this is the perfect time to buy your first rental property. However, according to entrepreneur and real estate expert Michael Andrew Lauchlan, now couldn’t be a better time.
Michael Andrew Lauchlan has an extensive history in the world of real estate. We caught up with him to talk about the four reasons why investing in a rental property in 2021 could be the right move for you.
People Will Continue to Work from Home.
Pre-pandemic, people working 9-5 jobs were tied down to one spot due to the location of their office. With COVID-19, most workplaces went remote permanently which meant people could work from anywhere.
“Now more than ever are people looking for places to rent for the short or long-term, given the newfound freedom in remote work,” Lauchlan says.
Mortgages are Low
A major side-effect of the pandemic is that mortgage rates have dropped immensely. In a way, it’s a blessing and a curse.
“People who couldn’t necessarily afford an investment property in the past now have the opportunity to buy one,” Lauchlan tells us.
Related: 2021 predictions for mortgage lending
Rental Properties are a Better Investment Than Stocks
Most people turn to the stock market when they’re looking to make an investment. According to Lauchlan, however, this is somewhat of a myth.
“When you invest in a rental property, much of what you get back is under your control,” he tells us. “Stocks are a lot more unpredictable.
Though the housing market isn’t always stable, rental properties have the ability to appreciate in value and tend to fluctuate a lot less.
Related: When Should You Buy Your First Rental Property?
Many Houses Weren’t Able to Sell Because of the Pandemic
“There are a lot more properties on the market that usually wouldn’t be,” Lauchlan says. This is perfect for anyone looking to make a property investment purchase in the next year, because they have a better chance at getting a great property for a lot less.
