Buying real estate is about more than just finding a place to call home. Real estate is a great investment option. Investing in real estate has become increasingly popular over the last fifty years and has become a common investment vehicle. It can generate an ongoing income source. It can also rise in value overtime and prove a good investment in the cash value of the home or land that you buy. You can even use it as a part of your overall strategy to begin building wealth. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate can be a little confusing. With the following points, you will learn to see real estate as an investment.
Renting vs. Owning- The obvious choice:
With College being more expensive than ever and a lack of starter housing inventory there is a common pattern a lot of millennials are falling into - renting. Instead of putting a monthly payment towards a mortgage, you're paying it to a landlord. Not to mention a mortgage payment can be up to 40% cheaper than a rent payment on an identical property. Also, don't dismiss the fact that with a mortgage you have an asset you can borrow against and begin to build equity.
BOTTOM LINE - Either way you're paying a mortgage - When you rent you're simply paying a mortgage for someone else.
Real Estate Investing:
An educated Real Estate investment takes the same amount of research as any other investment. The reason why Real Estate is a more solid investment is simple - there are certain desirable markets that will never be negatively impacted by a bust. Back Bay, North End, Manhattan, Beverley Hills, etc. Furthermore, in owning Real Estate, the need for rental units will never disappear, giving you a direct line of revenue as your investment (property) appreciates.
Why you should opt to buy instead of rent:
- Financial Stability
- Place to call home
- Start a family
- Cheaper than renting
With rates at historic lows don't get trapped renting - buy a place for you and your loved ones today.
Don't get stuck paying another mortgage!
You can invest in Real Estate no matter your income level:
Things like PMI and a higher interest-rate are seen as penalties for putting down less than 20% - when in realty consumers should see these as tools. PMI opens up consumers to purchasing Real Estate with less than 20% down. A higher interest-rate protects a lender from someone with a shaky credit history - but still this allows the consumer to buy with less than perfect credit. Bottom line: You don't need perfect credentials to buy a home of your own today.