Northern Virginia (NoVA) is one of the regions where investment prospects are projecting prosperity in 2021. One recent report says that in September 2019, the housing market in NoVA registered a 58% increase over the previous year.
Navigating through such a market can be both exciting and challenging. Typically, an investor looks for reasons to consider expanding their portfolio to a new region of interest. The current world situation would naturally be expected to produce fear and uncertainty regarding the future of any rental market. However, despite the pandemic, the rental housing industry is growing.
Projections vary, and markets are tight, but smart investors are monitoring trends in order to expand their portfolio. In this sense, having a partner that is as invested as you are in your success can be a great way to wrangle the market (a Northern Virginia property management company can help find the right investment for you).
Besides the obvious reasons why some choose to invest in Northern Virginia—like its beauty, its rich history, and its tourism—there are practical reasons to invest. The following are some of the reasons why choosing this rental market can be a wise move for property owners looking to expand.
1. Tech Giants, Universities, and the Military
The presence of tech giants in any community causes a surge of growth in the property investment sector. Various well-known technology companies have announced investments in Northern Virginia over the past couple of years. With each announcement, investment opportunities open up, which promise to provide steady income flow and further portfolio expansion for years to come.
A recent example is that of Amazon’s influx of 25,000 jobs, which they say will also result in improved infrastructure and public transportation in adjoining communities. These are things that potential renters will look for before renting. There are also several universities (and the military influence on our area) that attract investors and renters alike and result in expanded communities with improved infrastructure.
Even an experienced investor can get lost navigating the seemingly countless options presented by such developments. But a NOVA property management company could assist you by:
- Identifying investment ‘hot spots’
- Keeping you notified of market conditions
- Marketing your investment in the right pool of renters.
2. Interest Rates Are Still at Tremendous Lows
While it’s true that in some areas, home prices have risen, interest rates are at an all-time low. For the buyer, they promise to stay that way for 30 years—if secured now.
- Low interest rates allow investors to buy into a rental market that has experienced a steady rise.
- They can spur businesses to expand and grow, stabilizing the debt load carried by investors, preparing businesses for what’s to come.
- Lower interest rates are a key benefit to long-term investors—and crucial to building a larger portfolio.
- Daring investors want to take advantage of the benefits of such circumstances—without falling prey to the risks and dangers.
This is another arena where Northern Virginia property management expertise can be an asset to investors looking to buy now:
- Your property partner can provide financing tips
- They can even help you discover options for financing.
3. Now Is the Time to Invest
Traditionally, families move during the summer months when schools are out. This means that they need to begin looking for a new home in the spring. This makes autumn and winter ideal times for investors to acquire new properties.
Timing is an important consideration when entering a new rental market, so working with local teams and their combined experience can be the ticket to sustainable portfolio growth in the NoVA area. A NoVA property management expert like Renters Warehouse can:
- Help you find the right investment opportunity
- Manage your portfolio if you’re a long-distance investor
- Market and advertise any rental properties you acquire in the area.
4. Tenants Are Easier to Find
In addition to benefiting from an influx of workers and students as a result of tech companies, universities, and the military calling our area their home, Northern Virginia is close to our nation’s capital. This means that there are plenty of suitable renters to choose from. It’s actually easier (and more profitable) to invest in the cities and suburbs nestled around DC than to invest directly in the capital itself.
The population of Northern Virginia is also very transient, which means renters are constantly moving in or out. That creates a very busy rental market since transience encourages people to rent rather than buy. Of course, this movement produces a heavier workload when it comes to property preparation and renter placement, but a Northern Virginia property management company could assist you by:
- Marketing your property to the right pool of renters
- Screening potential renters
- Providing reliable customer service.
5. The NoVA Area Enjoys Abundant Affluence
The average salary of a NoVA resident is over 25% higher than that of the average American. With an environment conducive to real estate investments, the Northern Virginia rental market presents opportunities not just to expand one’s portfolio but to become quite successful.
The property investment market in Northern Virginia provides a wonderful opportunity for investors to expand their portfolios. Of course, there are challenges associated with investing in any real estate, but the right partner can help you navigate many of these by taking on the day-to-day tasks investors otherwise face alone.
You can learn more about this for free when you download the Renters Warehouse guide to real estate investing in the NoVA area! It’s full of tips for how to grow your portfolio with the aid of the right partnerships.