Why An Investment Property Makes A Great First Real Estate Purchase
Not ready to buy a home yourself but want to take advantage of great market conditions? Consider buying an investment property! It's a trend that's taking over real estate, as savvy investors look to put their money in an appreciating asset. Here are five reasons to consider it.
1. Rates are crazy low. Lower rates mean more affordable lending, or more for your money if you choose to reach higher.
2. Because it will appreciate. According to CoreLogic, "The overall home price index (HPI) has increased on a year-over-year basis every month for seven years." The long-term price appreciation of real estate can provide one of the safest investments out there.
3. Because passive income is good. Yes, it's nice to know there will likely be appreciation over time, but the real key to success with rental properties is passive income.
"The best part about rental properties is that they provide a steady income," said Mashvisor. "What would be better than having a check sent to you every month? In order to have positive cash flow, you have to make sure you invest in a profitable rental property."
4. To turn it into a short-term rental. The short-term rental market has opened up a new world of opportunity for investors. By buying in the right location-by lakes, in vacation towns, or in close proximity to festival grounds or sports centers, you have the potential of making significant return in a short period of time. Just be sure to check the local laws and ordinances, as lots of cities have been cracking down on Air BnB and other short term rental services.
5. Because it can help you buy the home of your dreams down the line. "Buying an investment property before your first home does not imply that you won't have the funds to purchase your own home at some point," said Mashvisor. "In fact, investment properties that have been purchased wisely and have grown in value can offer you a sizeable amount of wealth and equity."
Considering purchasing a rental property of your own? Lifetime Realty Group co-founder Jeremy Rynders was interviewed for Homelight and has some great insight into what it takes to get into investment properties. Link below-
Lifetime Realty Group is always available for your questions and consultations. You can email email@example.com or call us at (262)696-9884.