With interest rates at historic lows, now may be a great time to consider investment properties

Imagine owning a home and having someone else pay for it. It may sound too good to be true but that’s exactly what investors say happens when your own a rental property.”You get a dividend every month on a rental and then eventually that property is paid for and you have an income stream ongoing. So it’s a nice way to re-look at how you retire,” Diane Hughes said.Hughes is one of the top real estate agents in Omaha, Nebraska, with more than $100 million in sales. She’s also a property investor.And if you’ve ever considered investing in property, right now may be the perfect time to get started.”The interest rate right now is so low. You’re able to get loans, depending on your credit, at rates under 3%. That’s huge.”The pandemic has pushed interest rates on home mortgages to historic lows. “There was a point in time when interest rates on home mortgages were in the double digits, so rates as low as 3% shouldn’t be ignored,” Ben Kugler with Freedom Lending, said.”Lower rates mean thousands of dollars in savings for property owners,” he said. For example, Kluger points out the difference between a 3% interest rate and a 6% rate on a $200,000 home. Over the course of a 30-year mortgage, a 3% rate will save you as much as $128,000 just in interest. Brokers have seen a lot of people taking advantage of the low rates. Homes at that $200,000 and below range in the metro are selling in a matter of hours. People are even coming from other states, like Colorado where prices are much higher, to buy investment properties in the metro.”We stage every one of our properties. It doesn’t matter if we are trying to rent it or if we are trying to sell it,” Hughes said.Hughes said you have to make properties stand out and be wise with how you spend if you want to see success in real estate investing. “Two of my condos in Midtown I rent out using Airbnb,” she said.She’s learned you have to be prepared for all sorts of surprises. “We took a hit from the pandemic. April was a tough month,” she said.The pandemic forced cancellations of every major event scheduled in Omaha and Hughes saw nearly every reservation canceled. “Airbnb allowed everyone to get their money back, which normally isn’t the case. And you still have to make your payments. You still have expenses. Taxes don’t go away. So, you still have to do all of that,” she said.So you’ll want to be prepared and work on building a cash reserve if you own a property. “Currently my Airbnb units are rented at an 80% occupancy. Am I surprised? Absolutely, because in April we had nothing,” she said. Airbnb rentals have bounced back even faster than almost anyone expected, even the company’s CEO. Brian Chesky talked about it on a recent podcast with Fortune. “We were expecting this storm to go on for years. And something remarkable started happening. At the end of May and early June, we did more business in the United States than at this time last year,” Chesky, said.Chesky also commented on the reason behind the turnaround. “People don’t want to get on planes, they don’t want to cross borders,” he said. “What they want is to get in a car and travel up to 300 miles.”And they’re booking places to stay with Airbnb. Booking condos again owned by people who’ve learned something.”Real estate is the best way to secure long-term wealth. It’s even better than a 401K,” she said.Hughes plans to keep investing and building up her real estate portfolio. “The goal is one a year, We plan to buy a new property each year,” she said.Hughes encourages anyone who has a passion for real estate to give it a shot. There are risks, but there can also be big rewards. The decision is up to you.

Imagine owning a home and having someone else pay for it. It may sound too good to be true but that’s exactly what investors say happens when your own a rental property.

“You get a dividend every month on a rental and then eventually that property is paid for and you have an income stream ongoing. So it’s a nice way to re-look at how you retire,” Diane Hughes said.

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Hughes is one of the top real estate agents in Omaha, Nebraska, with more than $100 million in sales. She’s also a property investor.

And if you’ve ever considered investing in property, right now may be the perfect time to get started.

“The interest rate right now is so low. You’re able to get loans, depending on your credit, at rates under 3%. That’s huge.”

The pandemic has pushed interest rates on home mortgages to historic lows.

“There was a point in time when interest rates on home mortgages were in the double digits, so rates as low as 3% shouldn’t be ignored,” Ben Kugler with Freedom Lending, said.

“Lower rates mean thousands of dollars in savings for property owners,” he said.

For example, Kluger points out the difference between a 3% interest rate and a 6% rate on a $200,000 home. Over the course of a 30-year mortgage, a 3% rate will save you as much as $128,000 just in interest.

Brokers have seen a lot of people taking advantage of the low rates. Homes at that $200,000 and below range in the metro are selling in a matter of hours. People are even coming from other states, like Colorado where prices are much higher, to buy investment properties in the metro.

“We stage every one of our properties. It doesn’t matter if we are trying to rent it or if we are trying to sell it,” Hughes said.

Hughes said you have to make properties stand out and be wise with how you spend if you want to see success in real estate investing.

“Two of my condos in Midtown I rent out using Airbnb,” she said.

She’s learned you have to be prepared for all sorts of surprises.

“We took a hit from the pandemic. April was a tough month,” she said.

The pandemic forced cancellations of every major event scheduled in Omaha and Hughes saw nearly every reservation canceled.

“Airbnb allowed everyone to get their money back, which normally isn’t the case. And you still have to make your payments. You still have expenses. Taxes don’t go away. So, you still have to do all of that,” she said.

So you’ll want to be prepared and work on building a cash reserve if you own a property.

“Currently my Airbnb units are rented at an 80% occupancy. Am I surprised? Absolutely, because in April we had nothing,” she said.

Airbnb rentals have bounced back even faster than almost anyone expected, even the company’s CEO. Brian Chesky talked about it on a recent podcast with Fortune.

“We were expecting this storm to go on for years. And something remarkable started happening. At the end of May and early June, we did more business in the United States than at this time last year,” Chesky, said.

Chesky also commented on the reason behind the turnaround.

“People don’t want to get on planes, they don’t want to cross borders,” he said. “What they want is to get in a car and travel up to 300 miles.”

And they’re booking places to stay with Airbnb. Booking condos again owned by people who’ve learned something.

“Real estate is the best way to secure long-term wealth. It’s even better than a 401K,” she said.

Hughes plans to keep investing and building up her real estate portfolio.

“The goal is one a year, We plan to buy a new property each year,” she said.

Hughes encourages anyone who has a passion for real estate to give it a shot. There are risks, but there can also be big rewards. The decision is up to you.