Investing in single-family homes has seen an increase in recent years. This trend has been observed in consumers from Ireland, as more and more Irish investors opt to bet their retirement on steady options in the property market.
This view is also shared by business magnate and investor Warren Buffett. In an interview with CNBC’s Squawk Box, he revealed that investing in a single-family home is something he would really consider. “If houses are bought at low rates and held for a sufficiently long period of time, single-family homes perform even better than stocks,” he iterates.
From research finding on Irish investor attitudes, Michael Gordon, Head of Customer Management, Insurance and Investments at Aviva Ireland, reveals that “regular saving and investing is the best approach to accumulate funds for retirement.” Having said that, investing in single-family homes may pose some questions to those who are in it the first time; here are some tips to get you started:
Assess the location. If you intend to buy a house and flip it, knowing the crime rates and establishments of the area before buying would allow you to sell it easier. If you plan on renting out the property, the condition of the house compared to its surrounding is something you must take into consideration.
Think about insurance. Of course, having your property insured translates to having your money insured as well. If you intend to invest on a single-family property, the type of property definitely impacts insurance premiums. More importantly, insuring your property protects you against damages that are brought by natural causes, like fire or hurricanes.
Know your tenants. The neighborhood from which you buy a property for investments speaks so much of the kind of people you target to sell or rent out to. A decent-sized single-home property has a tenancy of 3 to 5 years. Keeping your tenants staying longer on your property saves you the time and money to repeatedly advertise your property.
So whether you’d like to buy in properties in Birmingham, or someplace here in the South, this consumer trend from Ireland may be the profitable investment you’ve been waiting for.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.