If you are young and looking to buy a new live-in apartment, you should probably reconsider your decision and turn your first home into an investment opportunity. Many people choose to wait until they have secured their first or second home before they invest in real estate, but it’s better if you could do it sooner. Below are a couple of reasons why real estate investments at an early are a good idea.
In the wake of the mortgage crisis, many people have wondered whether there’s ever a right time to invest in a home. One way of easing such worries is by knowing that when you purchase a house, it can pay itself off once you rent it out or resell. Turning a home into an investment property helps you turn poor credit, limited responsibilities, and less than perfect lifestyle into an opportunity – all that’s required is smarts and real estate shrewdness.
There’s nothing wrong with following the conventional timeline where you put off investments to your 30s or 40s. However, if you are in your 20’s and have a solid job, waiting so long is not a great idea.
Here are four reasons why you should be investing in real estate while young.
- You Are Young
It’s pretty amazing being young and independent. You live by your own rules, where you want, purchase what you want, and travel whenever you feel like. However, that can get old fast, especially if there’re goals you want to achieve in life.
All the money you’re spending while “living the life” in a cramped apartment should be spent elsewhere. Money saving and building your credit are not impossible tasks, and they are part of what is required to qualify for a mortgage loan. Today’s lifestyle may allow you to cut costs in ways that may be impossible in the future when you have more responsibilities.
- Real Estate Prices are Low
Recent reports indicate that home prices are rising. However, most of these reports have bargains for potential homebuyers in the form of distressed sales. A distressed sale means that a home or property has been foreclosed and that a bank would be willing to sell it at a loss to clear its books.
Such distressed properties also drive down the cost of properties in the same neighborhood. The market is full of distressed homes on sale, and purchasing one gives you a chance at owning a significant piece of real estate at reduced market prices. However, before you purchase any property, make sure that you can afford it.
- An Extra Source of Income
If you are buying property with the intention of renting it out, you can profit off the investment as soon as the first tenants move in. You can then take the money you get and reinvest it into your property or use it for paying off other debts and bills.
- The Future
In the next decade, it’s expected that immigrants would be more willing to purchase property. This is because they have a strong desire of becoming homeowners. As more people around the country move to becoming homeowners, you’ll have an opportunity to capitalize on the shift as a property owner.
Would you want to miss an opportunity of owning property in a neighborhood that will realize skyrocketing prices in future? Your future self wouldn’t want that! If you think, real estate investing is the right route for you but not sure where or how to start, it’s time you find a property development company to help you understand all the different options available.