When it comes to getting your first home, you should think about how you want to use it. Some people buy a home that they can move into and live in, and others see that there is an opportunity to make this home an investment property. Some people buy a house first for themselves to live in before worrying about buying further homes to invest in. The good news is that you can start in the investment game much sooner than you think when you make your first home an investment property.
While you may need the expertise of an experienced home loan modification attorney to get some advice, you should think about how you can ensure that you turn this first home into something bigger than it could have been. All it takes is a little bit of critical thinking and some information on the real estate sector. Below, we’ve got five reasons you should consider making your home purchase an investment one rather than one you live in.
- When you’re young, you have so much time to buy a house and set up your life. Being young means you are without much responsibility for anyone except for yourself, and the money you have right now could be something you invest rather than sit on and wait to use.
- It’s not expensive – kind of. Real estate doesn’t have to be pricey, though we all love those million dollar homes on the television. Most real estate markets have distressed homes for sales and these are usually those that are foreclosed and the bank is looking to sell off. Buying one of these allows you to own for less and you can spend time renovating it as you please.
- Another source of income. If you purchase property you hope to rent, you can profit as soon as you have someone to move in. Anything you earn can be reinvested or saved up elsewhere. It’s a great way to generate another income, and you can use the money to build an entire portfolio.
- You can renovate. A fixer-upper home is going to earn you more money over time if you take the time to plan a design and build up a house. You can then sell this on and keep going with the same pattern of reinvestment.
- Long-term gain. Choosing to buy a house at a younger age gives you a longer time to enjoy it and make it the home you want it to be. Whether you sell it for the cash is totally up to you, but you can still choose to have a house and move in later. You could be a landlord and build your own rental portfolio to manage.
Buying a house is a huge deal no matter when you buy yours. Buying a home as an investment property gives you a foot on the property ladder you may not have had before. Start small and build up – you’ll never regret it!
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)