You’ve probably considered purchasing a commercial building or other rental real estate as a way to grow your wealth. However, if you want to buy an investment property, you should get the timing right. The months of November and December tend to bring some of the best real estate bargains you could ever dream of. Here are some reasons to buy your investment property this holiday season.
- Fewer buyers in the market means less competition
Real estate activity tends to slow down toward the end of the year. There are fewer sellers and buyers in the market, which reduces your competition when looking to purchase a property. It’s easier to land a reasonable bargain because the probability of facing over-asking price offers from fellow buyers is lower.
- With motivated sellers, your bargaining power increases
Naturally, anyone listing their property during the holidays rather than waiting until next year has a strong motivation to sell right away. Remember the reason why property markets aren’t too crowded now is that most sellers won’t be listing their property until March or later. That’s when the majority of potential buyers will enter the market in search of a property. With the bargaining power now in your hands, it’s an ideal time to try and strike a good bargain on an investment property.
- The process goes a little faster
When you’re looking to buy an investment property during the holiday season, chances are you want to conclude the deal before the end of this year. Everybody else involved in the transaction wants that too, from realtors and sellers to home inspectors and mortgage providers. This can help fast-track the purchase process and close on the transaction faster than you normally would at other times of the year. It would allow you to start accepting tenants into your property sooner than possible during busier months for real estate.
- You see the property’s true curb appeal
The holiday season is a good time to see first-hand what the property you hope to buy really looks like. It’s winter, meaning that the weather isn’t ideal for owners/sellers to make temporary cosmetic cover ups to entice prospective buyers. This also means that the curb appeal you see during staging is more likely what you get when you buy. In contrast, most commercial property sellers have ample time to make their property look better than it really is during warmer, sunny months of the year.
- End-of-year tax advantages
Any legitimate tax savings can go a long way, even for you as a real estate investor. Make sure to close on your investment property transaction before December 31st, and you may be eligible for end-of-year tax deductions. Tax savings heading into the following year aren’t bad at all for your bottom line. That’s another good reason why buying property during the holidays is a smart idea.
- Potentially lower mortgage rates
While there are always multiple factors at play when it comes to interest rates, the end of the year can bring some incredible holiday deals. This may be why mortgage rates tend to stay down throughout the season, especially with fewer buyers in the market. Lower rates translate into more savings for investors.
Well, you can buy an investment property at any time of the year. However, if you’re looking to strike a bargain with commercial real estate financing right away, speak with Fidelity Mortgage experts today. We have some of the most flexible lending terms on the market!