Great summary Ben! If you want any real-world examples of investor costs rising, I'd be happy to share a few case studies. The items you mentioned, property tax, repairs, insurance. Definitely up. I would also add the cost of property management, capital expenses and utilities are also elevated. Many towns in our area (Bangor, ME) recently were mandated to re-assess property values which was a big driver in the property tax increase. Many property owners saw 33% or more increases in property tax in one year. If rents decline, 2025 could squeeze some investors quite a bit in two directions - 2025 will also be one of the first years that investors who use commercial loans will start to see their 5yr adjustable rate mortgages jump in rate from say a 4% rate in June 2020 to 8% in June 2025.
Great summary Ben! If you want any real-world examples of investor costs rising, I'd be happy to share a few case studies. The items you mentioned, property tax, repairs, insurance. Definitely up. I would also add the cost of property management, capital expenses and utilities are also elevated. Many towns in our area (Bangor, ME) recently were mandated to re-assess property values which was a big driver in the property tax increase. Many property owners saw 33% or more increases in property tax in one year. If rents decline, 2025 could squeeze some investors quite a bit in two directions - 2025 will also be one of the first years that investors who use commercial loans will start to see their 5yr adjustable rate mortgages jump in rate from say a 4% rate in June 2020 to 8% in June 2025.
Great article and spot on.