Is It a Good Time To Buy an Investment Property?
If you’ve been thinking about buying an investment property, you’ve probably asked yourself the same question many investors are asking right now — “Is it a good time to buy?”
With home prices and interest rates rising, it can be tempting to sit on the sidelines and wait for “the perfect time.” But as our good friend Peter Skaggs with Innovative Mortgage explains, waiting could actually cost you tens of thousands of dollars in lost opportunity.
THE REAL QUESTION: WHAT HAPPENS IF YOU WAIT?
Peter has over 16 years of experience investing in real estate and owns multiple rental properties, apartment complexes, and commercial buildings. He’s seen the market go up and down — and his answer is clear: real estate continues to outperform other investments over time.
UNDERSTANDING THE FOUR PILLARS OF WEALTH IN REAL ESTATE
Real estate isn’t just about monthly cash flow. Every rental property builds wealth in four key ways:
- Cash Flow: The money left after paying all expenses.
Even if it’s slightly negative today, rents typically increase over time. - Principal Paydown: Your tenants are paying off your mortgage every month — growing your equity without you lifting a finger.
- Tax Savings: Investors benefit from depreciation and other deductions, saving thousands of dollars each year in taxes.
- Appreciation: Home values rise over time. In Utah County, for example, home prices have historically increased around 4–5% annually.
When you combine all four, Peter’s calculation showed a 24% return on investment in the first year — even with higher interest rates! Over the years, that return only grows.
THE COST OF WAITING
If you wait a year for rates to drop, you could easily miss out on $18,000–$20,000 in equity and growth. And when rates do drop, home prices typically rise — meaning you’ll pay more for the same property later.
As Peter says, “The best time to buy real estate was 20 years ago. The next best time is today.”
FINAL THOUGHTS
We’ve known Peter for years, and We’ve always been impressed by his expertise and his passion for helping others understand real estate investing.
The most eye-opening part of his presentation is realizing that a small negative cash flow today can still outperform other investments — and that waiting for “the perfect time” often means missing out on years of appreciation and equity growth.
On Peter’s website, www.innovativerates.com, you can learn more about real estate investing, mortgage programs, and even lifestyle assets — something few investors truly understand.
And if you’re ready to start investing but want to make sure your property is protected and performing at its best, visit us at www.kasteelproperty.com.
At Kasteel Property Management, we do more than just watch your rental property —
We protect it, cultivate it, and help your investment grow.
