So, you’re looking for your very first home to buy and live in. Maybe you should put the thought of living in it aside and consider renting it out instead. Investment properties are a very lucrative market right now, according to thepattisallgroup.com. More people are deciding to purchase homes in order to rent them out as soon as they do. Now, the majority buys their first home (and sometimes their second) before investing in a property like this. You should seriously think about starting before this. Here’s why investing in real estate for rent early on is a good option.
You’re Young, Wild, and Free
As a young person, the feeling of independence is exhilarating, to say the least. You are finally the master of your own destiny. You make the rules, no one else. You can live wherever you feel like living, buy whatever you want to, and go wherever the world takes you. However, this freedom can start to taste a little stale pretty fast, especially when deep down you know that you want something else.
You could take all the money that you’re spending on temporary pleasures right now and spend it on an investment in your future. You can start saving and building your credit right now – it isn’t as impossible a task as you might think. Both these actions will help you be more eligible for mortgages in the future. While the life you’re living right now might be fun, battening the hatches and saving hard can make for a ton of secure fun in the future.
Investing in Property Right Now Saves Money
Home prices are constantly on the rise, aren’t they? Every time you do research, that’s the one theme that recurs every single time. The cost of living is increasing like never before. However, there are many people who haven’t been able to afford the cost of living and have had their homes foreclosed. These homes are sold at auction by the banks that repossessed them to the highest bidder. The sales are fast and easy, and the prices are significantly less than their actual value because banks want liquid assets. You could purchase a foreclosed house as an investment property for a low price, as long as you check it and make sure you can afford it first.
Extra Income is Always Welcome
When you start renting your first house out, you get to supplement your income with more. The profits are vast, and allow you to pay off debts you didn’t think you could. You can even use the rent payments to help pay off the mortgage on the house, killing two birds with one stone and setting you up for ownership of a mortgage-free property in the future.
People are moving to the suburbs more often today. You have the opportunity to capitalize on it by allowing your first house purchase to be a rental. Consider the many benefits, weigh them against the risks, and make the right choice for yourself and your bank account today.