If you’re young and you’re thinking about purchasing a new home to live in, maybe you should consider turning that first home into an investment property. Most people generally wait until they’ve bought 1 or 2 houses before thinking about investing in real estate.
However, jumping in early into the real estate investment game might be good idea. Here’s why:
Being young, independent and full of energy can be pretty amazing. Live where you want, buy what you want, travel whenever you want and make your own rules. All that money you’re spending “living the life” could be spent somewhere else, on smarter purchases.
Your current lifestyle might actually allow you to cut costs in a way that might not be possible later in life when you have larger obligations.
Manage your money effectively and come up with enough cash for a down payment.
Real Estate is Cheap NOW
Over the past years, we’ve seen an increase in prices for homes. However, the market is currently in a difficult situation that has turned this fact around, making it a buyer/renter year. With the access of housing availability, most homeowners looking to desperately get rid of their properties. There are plenty of distressed homes for sale. Buying one would allow you to own an investment for significantly less than market value, especially as prices begin to rise. Before buying any property, however, it’s important to make sure you purchase a house that you can afford.
You’ll Have Another Source of Income
If you are purchasing a property that you plan to rent out, you’ll be able to profit off your investment as soon as you find tenants. Then you can take the money you earn and reinvest it in your property or use it to pay off other bills and debts.