Five Reasons to Invest in Military Housing



Military housing is a wise investment for so many reasons. When asked about my best experiences with tenants and who are the most lucrative as far as income potential, I always say military housing is the way to go.

Military Homes Need YOU! © Christos Georghiou – Fotolia.com

If you plan to purchase a few properties close to a local military base I’ve found that military families as tenants are pretty much the best.  Of course, every tenant or family of tenants is unique. I’ve been involved in real estate investing in San Antonio, also known as Military City USA, for a few years now and in my experience there are five excellent reasons to buy military housing as an investment…

1. Military families make quality tenants

And why is that you might ask? Speaking from personal experience, every military family I’ve ever rented to took better care of the property than I would. I’m kidding of course, but there is a certain sense of pride in the home (even though they are renting). The grass was always mowed, the landscaping kept nice, and any problem reported immediately. Basically, I find that military renters take pride in where they call home. Speaking not so personally, military families get housing allowances (i.e., BAH, Basic Allowance for Housing) so they are never late or strapped for rent, plus most come with solid referrals.

2. As long as there are military families there are military houses

That means the vacancy rate on military homes as investment properties is very, very low. I’ve never had any trouble renting my homes once one family gives notice.

3. Lower cost houses, lower mortgage rates

Typically, if you’re not a military family, you’re probably not looking to buy homes near an army base. Plus, if you’re a military family, you won’t buy a home due to the fact that you’re relocated regularly. So that leaves a lot of earning potential for property investors who can buy low cost houses at lower mortgage rates—which means more money in your pocket over the long term.

4. No bidding wars

If you’ve just read what I said above, you can already guess that there’s little competition when it comes to buying up military housing.  Of course you might have to compete with other wise property investors, but the likelihood of that is slim when it comes to property located near military bases.  As a property investor what other opportunity do you have to take advantage of the potential long-term earnings in such a low-competitive market?

5. Demand for rentals

While the buying demand is low for military homes, the rental potential is very high. Most military families who have just started their careers would rather live near the base, but not on the base. And purchasing a home is not an option if they might be relocated in a few years.  This explains the strong demand for quality houses, condos, apartments, duplexes, and townhouses near military bases.

 

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Paula C. Hester is a freelance writer who loves to write about trends in the real estate, with an eye to cutting through the jargon and presenting the facts in plain English. Ever since purchasing her first home she has been fascinated with the industry and this led her to getting involved in a few house flips.  Today she owns a number of rental properties and is committed to helping others get involved with real estate investing.