Top Tips When Buying Investment Property in Chapel Hill

Are you looking for an investment property in Chapel Hill? 

With globalization and digitization at unprecedented levels, there are several options that one can consider as an investment. Real estate, as traditional as it sounds, still holds. It is a trusted, tried, and proven asset class that guarantees tax advantages, steady income, and appreciation in property value. 

The trick to enjoying all these benefits lies in investing in the right location and also considering the right investment tips. In this article, the experienced team from Louise Beck Properties advises potential investors on why they should consider Chapel Hill for their next real estate investment and the top investment tips that they should prioritize. 

What’s Interesting about Chapel Hill, NC?

When looking at the regional property market in the North Carolina area, there are several markets that you can consider for your next property investment. So, why should you choose Chapel Hill over them? 

As a property investor, one of the key elements that you should keep your eye on is the population growth and demand for housing. Renter demand is one element that you don’t have to worry about when it comes to Chapel Hill. With a population of over 60,000 residents, residential and commercial real estate is in high demand. 

Chapel Hill is also located within the world-renowned Research Triangle. This is the famous educational research zone marked by the North Carolina State University, Duke University, and UNC. These educational institutions attract academics, researchers, investors and technology companies who boost the local market. 

With a growing demand for housing, developers have diversified the various housing units supplied to meet an increasing need. Choosing to invest in Chapel Hill means that you have a wide range of options to choose from. You can invest in luxury apartments, condominiums, single-family residences, multi-rental units and more. 

An important characteristic of property investment is value appreciation. This is not a guaranteed phenomenon and is contingent on demand-supply factors, and the local economy. Chapel Hill has enjoyed considerable home value appreciation over the years. Some neighborhoods have enjoyed double-digit appreciation. 

Tips when Buying Investment Property in NC

#1: Location 

You must have come across this mantra when looking at properties “location, location, location”. And while it might sound like a broken record, the impact that it has on rental demand and property value cannot be understated. 

Property is an immovable asset and therefore its value is derived from its surrounding amenities and proximity to other key facilities such as infrastructure, transportation hubs, and shopping districts. In your selection of the ideal investment, you will need to find a property that enjoys a close proximity to these amenities and facilities.  

#2: Landlord responsibilities and obligations

Property is a highly regulated industry. It is at the center of societies, local economies, and politics. Property transactions are regulated by municipal ordinances, local laws, state, and federal statutes. Choosing to become a landlord means that you should be aware of these laws and regulations.  

#3: Property Management

Have you thought about who will manage the needs of your rental property? Purchasing is just the first step of the process. You will need to consider who will oversee its maintenance, collect rent, handle disputes between neighbors, and craft lease agreements. 

Most landlords and rental property owners first consider self-property management. It is often a technical curve for them as they are expected to become an expert in all things property management overnight.

We recommend that rental property investors outsource the property management functions to a qualified and experienced service provider. In the Chapel Hill area, Louise Beck Properties is known for its comprehensive and customized solutions guaranteed to take care of your property. 

#4: Investment Strategy

An investment is not a blind allocation of resources or funds. There must be a strategy behind  the investment. You will find there are many different property investment strategies. There are the short-term investors. This type either invests in foreclosed assets and flips them or holds assets in a short span to enjoy an appreciation. 

Long-term investors mostly consider investing in long-term rental assets. Depending on your investment strategy, you can align to a property type and also a location that matches this. For example, short-term investors looking to enjoy appreciation would invest in new and upcoming neighborhoods. 

#5: Is It a Feasible Investment?

Have you crunched the numbers? Is investing in Chapel Hill real estate a feasible investment option? We recommend that any investor look at the numbers and calculate the profit margins and expected return on investment. 

You will need information on rental property rates, appreciation, turnover, management costs, tax rates, maintenance, and much more. This information might be publicly available. You might also need to engage a property management professional to help you figure out where to start. 

Conclusion

Chapel Hill should be one of the primary destinations for you to consider for your next investment. With its high demand for housing, home value appreciation, and vibrant economy, you can enjoy all the benefits that come with property investment. 

From our experience working with various investors over the years, we have found that most are fixated on the selection of the ideal investment property. They often forget about the after, like the management of the property. Comprehensive management is what guarantees consistent rental income, appreciation in value, and the feasibility of your investment. 

For a wholesome solution, North Carolina residents should rely on the #1 property management company in the region, Louise Beck Properties. We manage properties in Durhan, Carrboro, Chapel Hill, and Chatham County. With us at the helm, you can be assured that your property will be in good hands.