The global pandemic Covid-19 has changed just about everything in our daily lives: from the way we go to work, to school, to the way we socialize and vacation. Another area where we are seeing a shift due to the pandemic is in the turnkey rental market in Detroit. In the wake of Covid-19, the turnkey rental market is booming.
If you are considering investing in real estate in Detroit, there is a not-so-secret trick which investors have been using to grow their portfolio quickly, easily, and with little to no work on their part — turnkey rental properties. This is a sector of the real estate market in Detroit where we are seeing drastic growth.
There are a few factors at play contributing to this boom, one of them is the incredibly low-interest rates that we are seeing across the country. Inventory in Detroit remains relatively low compared to the spike in demand, while interest rates continue to go down, motivating a lot of people in Detroit to invest in turnkey properties. Investing in property and buying property when interest rates are low is crucial to get a good deal and make the most money longterm. The boom in turnkey rental properties in Detroit could be because of the uncertainty surrounding the economy during Covid-19.
Turnkey properties require a bit less of a commitment and initial investment so they provide more safety during these uncertain times than other types of rental properties. With restricted travel and travel becoming a lot more difficult these days, turnkey properties are also a good investment for people who live out of town and who may not be able to physically get to their rental properties as much as they used to. Since turnkey properties require less maintenance and repairs, investors likely feel safer investing and owning turnkey properties during the global pandemic.
Another likely reason contributing to the rise of turnkey properties in Detroit is that real estate is actually considered as one of the safest investments. During Covid-19, we have seen layoffs, stimulus packages and an ever-fluctuating stock market which can make it a scary time to invest. The good news is that unlike stocks, bonds, and other such investments, real estate properties aren’t held hostage by the small ups and downs of the economy. This makes them the perfect investment for uncertain times.
Detroit’s economy has also been improving steadily in recent years. A lot to this growth is thanks to Michigan being home to some of the largest automobile manufacturers in the world. This can help make the Detroit market desirable to investors and homeowners alike. Detroit is seeing a high demand for rentals during these unprecedented times. Investing in turnkey properties in Detroit during the COVID-19 pandemic may be a great opportunity as long as you do your research and buy smart.