Generally, people wait until after they’ve bought their first home—or in some cases even their second—before they start seriously investing in real estate. However, there’s no rule to say that you can’t start earlier. In fact, more and more people are making their very first home purchase an investment property. It’s a growing trend and one that could really pay off down the line.
If you’re a young person who’s considering a real estate investment, this route may make a lot of sense for you. This article will help explain why…
Reasons to Make Your First Home an Investment Property
You’re Young
You may be devoting a big chunk of your paycheck to living the life—going out with your friends, traveling, etc. And chances are you’re living in an apartment or a rental house with roommates. There’s nothing wrong with that, per se, it’s how most young people start off. But there is another option: with shrewd money management, you can take that hanging-out money and actually build something with it, by investing it in a property that will appreciate in value over time.
Real Estate Can Often Be More Affordable Than You Think
There are a lot of properties out there that you can obtain for low down payments and manageable monthly mortgage payments. This is especially true if you are willing to look into distressed properties, and perhaps to do a little work in fixing them up. In many markets, now is really a very good time to search for low-cost investment properties.
It’s an Additional Income Source
Once you get tenants staying in your rental property and paying you monthly rent, it will be a whole new source of revenue for you—like getting a second monthly paycheck! This of course depends on how much rent you take in and how much your mortgage payment for the property is. But even if it’s just a few hundred dollars more, you’re getting that AND the property is gaining equity, which your tenants will be building for you.
Mortgage Loans Are Flexible
You may think you’re ineligible for homeownership because you don’t have sufficient money for a down payment. However, there are a lot of loan options that don’t require big down payments, and some that don’t require any down payment at all. Learn more by talking with Loan Fleet!
Time to Invest in a Home?
We don’t mean to suggest that real estate investment is for everyone. We only mean to suggest that you should consider it. We can help guide you toward financing solutions that may very well make real estate investment an attainable goal. Contact Loan Fleet today to learn more.