To protect your wealth and earn more on the real estate you’re investing in, it’s a good idea to diversify your portfolio. This means different things to different investors.
For some investors, it means buying different types of properties. If you primarily invest in single-family homes, maybe you’ll add some multifamily properties to your portfolio. Or, you’ll introduce some commercial properties as well as residential rental homes into your portfolio.
For other investors, diversifying means looking for new ways to finance acquisitions. The way you leverage what you currently own can often impact cash flow and ROI.
Creating a diversified portfolio is one of the best ways to minimize risks and increase long term returns. If you’re trying to increase the power and the purpose of your real estate portfolio, you’ll want to diversify in ways that make sense to you and your investment goals.
One good way to diversify is by exploring new markets.
Have you considered Roseville?
This is a great market for local investors as well as those who may live out of state or even out of the country.
There are dozens of great reasons to invest in Roseville rental properties, and today we’re sharing some highlights so you can understand why investment properties in this market might serve you in profitable and unique ways.
We hope you’ll want to talk to us further at Action Properties about how this market may fit your unique investment goals and portfolio priorities.
Investing in Different Markets Makes Financial Sense
Changing geography can be a great way to diversify what you currently own.
You don’t have to live in the market that you’re investing in. Technology has really made this possible over the last few years. You won’t be here physically, but with an experienced Roseville property management company helping you identify opportunities and then lease and manage your home, you can expect successful outcomes.
A lot of investors make the mistake of focusing on a single market, especially when they’re new to real estate. Usually, this feels comfortable. But that could be a false sense of security.
Keeping all of your real estate investments in a single market isn’t as safe as it may feel. In fact, it creates some extra risk. If the economy in that one area takes a dive or the major employer goes out of business, your real estate is at risk. You won’t earn as much and your asset won’t be worth what it once was.
Diversifying the geography of your real estate portfolio is important because you’re exposed to the dealings of each market. Diversify into new markets and different locations so you don’t have to rely on the strength of a single area.
Diversify With Roseville Real Estate
Roseville is an ideal location for your next investment because it’s so close to Sacramento and far enough from Silicon Valley and San Francisco to be protected from the outrageous sales prices. It’s not as large nor as expensive as other markets in California, and the area provides a great quality of life for residents. It’s performing well in terms of population growth, local economic factors, and general tenant satisfaction.
The environment and the weather is also hard to beat. Mild year-round temperatures make it an excellent place to live, and the area has everything people want in a city without a lot of the traffic, overcrowded conditions, or crime.
This leads to a strong pool of tenants. Investors won’t have to worry about whether they’ll be able to rent out their Roseville properties; there’s a demand for well-maintained and high-quality housing, and the renters in this community are stable, well-paid, and reliable source of rental income.
Understanding Roseville Home Values
Housing trends are always a bit different in this part of California than in other parts of the country. The Roseville market didn’t suffer some of the steep losses that neighboring markets endured during the worst of the pandemic. We have growing home values, but there’s actually still room for growth.
Investors can buy a reasonably priced rental home and allow its value to increase over the years. This probably isn’t the market to make money flipping a home, but for long-term investors who plan to buy and hold, the ROI in Roseville is going to be great.
Take Advantage of Low Inventory
New construction is on the rise in Roseville to meet the high demand and low inventory. As projects are continued, the existing inventory will continue to become more valuable, and if you own a rental home here, not only will you be able to charge higher rents, you’ll also earn more in appreciation when the time comes to sell.
The Roseville rental market is healthy and stable, and there is no reason to believe it will face a downturn, even if things become less stable around the country.
Every market has its own risks and rewards. If you take some time to get to know what we have going on in Roseville, you’ll see it’s one of the best places to diversify your portfolio.
Diversifying Your Portfolio With Different Types of Real Estate
Roseville also has a lot of different property types.
When you buy something here, consider investing in diverse asset classes. Think of investing in single-family residential properties, multi-family residential properties, as well as commercial real estate. This type of diversification will really maximize your potential for both cash flow and ROI because each of those property classes has stronger returns during different parts of the market cycle.
If you own all apartments or only commercial office spaces, you’ll increase your risk as the market turns. Diversifying allows you to take advantage of rental income and returns from various parts of the Roseville real estate market.
Working with experienced Roseville property managers can help you make smart decisions. You’ll get some great advice on where the market is performing well and how you can maximize your investment.
We’d love to discuss this further with you, so please contact us at Action Properties. When it comes to Roseville property management and investing in diverse real estate assets, we are your local and industry experts.