Are you thinking of buying an investment property in New Hampshire?
What makes rental property investments attractive is the future income potential it holds. Owning an investment property allows you to earn regularly every month and grow your finances.
New Hampshire is a great real estate investment given its beautiful location, high quality of living, and wealth of history. It also draws a massive number of tourists from all over. In terms of economy, it’s thriving under solid industries ranging from IT, healthcare, tourism, and construction. This provides plenty of opportunity in terms of employment and growth for local businesses.
For those who are new in the real estate investment industry, it’s important to do your research on areas to maximize the available opportunities. New Hampshire has several great locations so careful study is necessary to pick the right market.
In this article, we here at Keyrenter New England will discuss the basics of buying an investment property in New Hampshire. Follow these tips to get the most out of your rental property purchase.
What Is the New Hampshire Real Estate Market Like?
New Hampshire has magnificent views, low crime rates, and is home to major industries such as manufacturing, healthcare, and tourism. Boston is also located nearby making it a great base.
As a property investor, you can cater to tourists visiting New Hampshire or professionals moving to the city for its high employment prospects. You can also serve those who are working in Boston but prefer to stay in New Hampshire for its historic charm and natural beauty.
What’s more, rental properties will always be needed. In cities where industries are thriving, you’ll always see a huge number of people moving in and out. This is a great opportunity to grow your property portfolio by serving the housing needs of tenants looking to work in or visit New Hampshire.
Top Tips for Real Estate Investments in New Hampshire
The following are some things to consider when looking to buy an investment property:
#1: Find Properties in Your Price Range
In New Hampshire, one can pick several desirable properties for investment. Depending on your budget, you can choose to invest in condo units or single-family homes. You may even want to consider purchasing a home at a lower price point because it requires renovations.
The first thing to do is come up with a price range you’re comfortable with. Sticking to this will enable you to filter among the multiple available property types in the market.
When working out your price range, take care to include the associated taxes, closing costs, and HOA charges that are part of the property’s purchase. This can take a huge slice of your budget so including this in your property costs is vital.
#2. Opt for High-Rent Neighborhoods
Investors have a goal of increasing their financial earnings. To achieve this, you must focus on acquiring the highest returns for your rental investment in New Hampshire. Conduct an analysis of neighborhoods that offers landlords high rental payment returns while also considering their purchase price cost.
Note that improving your property equates to additional expenses so take this into proper account. Developing the features and adding top amenities to your New Hampshire property will greatly encourage renters to check out and choose your rental home.
#3: Consider the Benefits of Professional Property Management Services
Excited investors rarely consider the challenging tasks ahead of them when they become landlords. Managing your New Hampshire rental property can prove to be overwhelming when you’re handling several units. Property inspections, maintenance, and repair can consume a great chunk of your time.
Your tenants will also be expecting you to furnish a safe, habitable, and healthy rental space for them. Thus, you can’t run from your obligations. You need to tend to the daily upkeep and address property repairs. When emergencies occur, you’re also expected to be present and help resolve the urgent issues.
Since rental management isn’t for everyone, property owners have the option to engage the services of trusted management firms that offer professional services. The right company will be attuned to the needs of your rental property and work hard on making your tenants happy and satisfied.
#4. Crunch the Numbers
Before closing the property sale, it’s best to run the numbers. Market demand is always changing. Being prepared gives you an added advantage when you invest in a New Hampshire property.
Choose modest returns rather than inflated figures. This way, you can manage the downtimes.
Being too optimistic can build up your expectations causing you undue stress and disappointment if the reality doesn’t match your calculations. It’s more satisfying when you use conservative forecasts and gain high returns from your property investment. What’s more, this can provide you with more of a safety net.
#5. Find the Right Neighborhood
Always work with the current market data. Then study how similar rentals have performed in recent months. You should be in a position to forecast where the market is heading.
Check online to spot news of new infrastructure projects being completed, master-planned communities being built and more schools being constructed. These are signs pointing to where the growth in New Hampshire is situated.
In a Nutshell: Real Estate Investing Tips in New Hampshire
Investing in New Hampshire takes a series of logical steps. As an investor, you should begin by creating a budget range. Then you need to scout for high-rent neighborhoods to maximize your earnings and gain quick ROI.
Running different scenarios by crunching numbers is also essential to prepare yourself for different economic conditions. It’s also advisable to continually read up on new developments around different neighborhoods. Research is important to take advantage of various opportunities before the competition catches up.
If you want to focus more on growing your portfolio and have little time to dedicate to managing your rental property in New Hampshire, hire a trusted property management company like Keyrenter Property Management New England which has built up a great reputation in the industry.