Have You Ever Wondered Why Buying A House Is A Good Investment?
Real estate as an investment has always been touted as a smart financial decision. But do you know exactly why buying a house is a good investment? Here are some of the top reasons.
- Real estate is not as volatile as stocks or mutual funds. There is always a demand for housing. Even in an uncertain economic climate, price drops do not translate to an actual loss unless you sell the property. A real estate investment is also relatively easier to understand compared to stock markets. Everyone understands what a townhouse or a lakefront property is.
- You can use it as financial leverage and build wealth. You have a brick and mortar asset that you can control. You can flip it and sell it. Or you can rent it out. It’s a flexible piece of investment. You can also get tax benefits on investment properties. If managed properly, residential property investment can generate regular income.
So, is real estate a good investment? It sure is! But it all depends on the timing, the location and the type of property you invest in. It involves a lot of careful budget planning. For instance, when you purchase a rental property, you should not be dependent on rental payments to cover the mortgage.
Why Is Real Estate A Good Investment For Young, First Time Home Buyers?
You’ve worked hard, saved up and now you’re ready to buy your dream home. Congratulations!
But should you buy an investment property first?
It’s normal to want to spend your hard-earned money on that dream home. But if you want to think longer term, you may want to reconsider and purchase investment property instead. This is especially true if you are younger and not yet keen to start a family.
If you have a good job with a steady income, you can save up for a small investment property today. Look for a property you can afford. In time, when you have more financial obligations (aka raising a family), this will pay off.
Now is a perfect time because your current lifestyle allows you to be more flexible and save up. It may be harder to do so 10 years from now when you have school-age kids and a mortgage.
Some property investors purchase a larger house with a basement space that can be rented out as an apartment. You may also want to consider a duplex. The idea is you can live in one and rent out the other.
This could be a good set up for real estate first-timers. It hits two birds with one stone—you have a place to live and you have additional income from your investment.
When It Comes To Central Florida Real Estate, What You Need Is The Corcoran Connection
As a premier Central Florida realtor with over a decade of on-ground experience, we have much to offer. Our unique perspective of the market allows us to provide timely, honest and adaptable service.
Our mission is to help you achieve your goals. We are just as invested in your success, and our history of happy clients is a testament to that.
Central Florida has a robust economy and diverse communities. It’s great for families or for young people who want to be where the action is. And of course, it’s home to world-class entertainment destinations.
It is a promising choice for any type of real estate investment. If you need advice on how to get started, we can help you. Contact us now for tailor fit advice on Central Florida real estate.