While it might initially seem a bit far-fetched, the rising tension and Russian invasion of Ukraine is already having an impact on the U.S. housing market – which was already in the midst of a bubble – and in turn, it could even signal more potential renters for the home(s) and/or unit(s) that you have for rent in Central Florida.
With the potential for building materials like lumber and cement to increase (again), along with the likelihood that interest (and mortgage) rates will rise in the future, those who are on the proverbial fence about purchasing a home may have just fallen back into the rental pool. This means that your property(ies) could have more people competing for them.
In addition, higher prices on necessities like groceries and gas can also curb the budgets of numerous possible home purchasers and keep them as renters for at least a while longer. As a real estate investor, hanging on to your property could possibly, at least for the time being, net you a higher return on your income-generating investments, as the yield on the U.S. Treasury is still (as of early March 2022) holding below 2%.
This higher return, however, can also come with a certain amount of expenses that are associated with the property(ies), along with the physical tasks that are required for keeping rentals in livable condition.
With that in mind, if you own residential rental property(ies) in Orlando and/or the Central Florida area and you would like to delegate some of the time-consuming jobs like marketing for and screening possible tenants, collecting rent, maintaining regular property upkeep, and responding to emergencies 24/7, then it may be time to consider working with an experienced property management team.
At CFL Property Management, we provide a whole host of services that could make your life easier. So, if you would like additional details, then give us a call and we’ll set up a time to chat.
Source:
Russia-Ukraine Conflict May Dampen U.S. Mortgage Rates. By David Krechevsky. February 25, 2022. National Mortgage Professional. https://nationalmortgageprofessional.com/news/russia-ukraine-conflict-may-dampen-us-mortgage-rates
