Real estate is always highly sought-after; it can make an excellent investment with high returns, qualify owners for certain tax deductions, provide equity buildup and asset appreciation, and serve as a hedge against inflation.
Right now, this is even more true for owners of Missouri turnkey properties. The real estate market throughout the state, and especially in Kansas City, is booming. Almost 10,000 residential properties were sold across the state in August 2021 alone, up 9.3% from August just one year prior.
This is one reason why Missouri is the next real estate goldmine, but it’s crucial to have solid facts to back up that claim. Property investors, including those interested in purchasing passive income rentals, need to have a solid investment plan that includes information about different areas, statistics, and golden opportunities that are about to come up for grabs.
The Housing Market in Missouri Is Hot, Hot, Hot
From August 2020 to August 2021, the residential median sale price in Missouri rose 13.9%, and the dollar volume of residential properties sold in that time rose 20.4%, totaling over $2.5 billion.
The number of houses for sale throughout the state declined between the beginning of the pandemic in March 2020 and March 2021, showing just how significant the shortage of available homes really is.
Supply vs. Demand
This shortage of housing continues to drive real estate prices up. Compared to 2019, housing prices are up 27.4% on average across the state. Despite this increase, Missouri remains one of the leading states in the Midwest when it comes to housing affordability.
The market seems to remain aggressive, too. While many would-be sellers may have been hesitant to make their move, as demand drives prices up, those who have delayed may decide that now is the time.
Just how much demand is out there? In August of 2019, the average number of days a property spent on the market before being sold was 51. In August of 2021, that number dropped to just 24 days. Buyers are scooping up houses much faster as they become available.
Low-interest rates have also contributed to the current state of the housing market across Missouri. In the past year, the number of homes sold rose 12%. Annual interest rates across the board have been on a downward trend, hastened by the COVID-19 pandemic. The yearly average interest rate for 2020 was 3.11. In 2019, it was 3.94, and in 2018, it stood at 4.54.
Missouri Turnkey Properties
Even with inventory being low, it’s still an opportune time to purchase passive income rental properties. This is especially true since mortgage interest rates continue to be at record lows. Kansas City currently reports a sharp increase not only in housing demand but also in rental demand.
This is good news for anyone considering purchasing turnkey Jackson County real estate. Kansas City offers an attractive renters’ market, so landlords should have little trouble renting out passive income properties. When people use turnkey properties as a long-term investing method, property owners can come out way ahead of the market and a step ahead of inflation.
As the housing supply continues to decrease, more people (especially those who move to the area from other parts of the country) are turning to rental housing as an option. In fact, the housing inventory within Jackson County real estate is down 49% compared to last year, proving its growing need for available rental properties.
Buying turnkey rentals in Kansas City provides a myriad of potential benefits for property owners. First of all, they may be eligible for several tax deductions. Secondly, owners can also raise rent payments to offset hard-hitting overall inflation over the years. What’s more, they can reap the benefits of asset appreciation over time, and their properties will build equity they can use in the future for financial purposes.
Consider a Kansas City Turnkey Rental Company
With all this information coming into play, finding the right turnkey properties to use as passive income might seem next to impossible. You may want to strongly consider enlisting the help of a turnkey rental company to dig deeper into the market and release the full potential of what the real estate market has to offer right now.
The best turnkey rental company in Kansas City will be able to find Missouri turnkey properties that fit your budget, area of interest, and other preferences. In addition, this type of firm will have connections to many other industry professionals, from contractors to property management companies and everything in between.
Buying turnkey rentals in Kansas City can seem like an overwhelming, time-consuming task. Let a professional do the behind-the-scenes work for you.
If you’re interested in tapping into the opportunities that the current Missouri real estate market has to offer (especially in the Kansas City area), call Real Deal Properties.