With real estate prices rising and falling like a roller coaster, property investors are searching out niche markets that are more secure and less susceptible to ups and downs. Buying property near a military base is a good investment for a large variety of reasons. For instance, property near a military base will always have high demand, and owners will always be able to find quality tenants easily. Their buildings will also enjoy high appreciation rates. Property near military bases should be near the top of the list when searching out prospective new purchases.
Good Tenants, Steady Rent
Military families make some of the best possible tenants a landlord could wish for. Not only do they have a very stable source of income but many of them receive housing allowances, meaning that paying rent on time is very rarely a problem. Military families also tend to have solid references, and it is fairly easy to verify the service member's income and length of service. Beyond this, military families tend to take care of the property very well. Due to their military training, which emphasizes attention to detail, they stay on top of basic upkeep issues like cleaning and lawn maintenance much better than the average renter.
The Market is Always Strong
With new recruits constantly arriving at military bases, the demand for housing in these areas is as strong as in other highly desirable niche markets - like property near universities. However, because time spent in the military is often significantly longer than the average time it takes to grab a college degree, landlords with property near military bases are more likely to land long-term renters. Because off base properties are usually rented by families, even if the service member gets deployed the property will remain occupied by the other family members.This means that the demand for quality rental properties near a military facility can be so strong, yet the supply so short, that a waiting list often develops. Even when other parts of the city are experiencing a slump in the housing market, the steady economy of a military base keeps the market strong for adjacent and surrounding properties. Even commercial buildings around military bases tend to keep a high occupancy rate for this same reason: the base provides a steady stream of income to those that it employs. This, in turn, filters directly into the surrounding community.
Property Values Rarely Drop
Buying a property near a military base is also a good investment for its sheer long term value. The property values of buildings near military bases may not rise very much annually, especially in many areas with stagnant real estate markets.But these properties should enjoy a buffer of some degree of protection from housing bubble bursts. This is also because of the steady demand and economic influence that is created by the base itself. Because military retirees, as well as families that are currently employed in the armed forces, like to live near the base, this high demand will rarely waver as long as the base is operational. Of course, those looking to buy property near a military base should also research any planned foreclosures in the future. Property located adjacent to the base will experience catastrophic value loss if it closes, and this is the number one risk in investing in properties near military bases.
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