Why You Should Invest in Real Estate
Owning properties can be one of the most lucrative ways to make money. Whether you’re flipping homes, renting out, or just living in it- there’s no investment quite like houses. The process can be complicated for people new to it, but with work, you could be a seasoned pro in no time.
Here are the reasons you should invest in real estate, and a couple of ways to afford it.
To Live In
Owning, instead of renting, is the less expensive choice in nearly sixty percent of America. Although you need more upfront money for a downpayment, living in a property you own is cheaper by far.
On top of the price savings, you don’t have to worry about the unreliable changes rental services can make to their prices- and you will eventually be able to sell it and make a return on your investment.
If you can afford the upfront costs, buying a house is the financially intelligent thing to do.
To Rent Out
Since it’s cheaper to own than to rent out, an option for many homebuyers is to rent out their properties. You’ll draw in an income for just owning the land, and some services can manage it for you if you’re unsure about it.
If you have a larger home, you could even rent it out room by room for a steeper price.
It’s essential to consider the fact that your property will be in the hands of someone else, but as long as you price it right- and background check your renters- it should turn out well.
Remember to price competitively, while also making sure that you’re getting income above what your monthly mortgage is.
House flipping has gone in and out of style since the 90s. It’s a tricky process of buying a home, putting endless work into it, and then selling it for a profit. This option is better for someone who already has owned property and has some practice renovating a home.
In the right housing market, and with the right updates, you can make an average of $30,000 of profit off a good flip. Since the average house flip takes four to six months, you can end up making $120,000 a year.
Flipping depends on skill, an eye for design, and practice in knowing when a house gets marked below value.
How To Afford Properties
If owning property sounds excellent to you, but you’re not sure where to start- here’s what you need to know. The average downpayment for a home in America is fifteen thousand dollars. Make sure that you can have this much saved up, and then also give yourself some wiggle room for updates. If you aren’t sure how much you can afford monthly, use a mortgage estimator to help you figure out your budget.
You can take out loans to help cover the down payment, but you need to ensure your credit score is high, and that you’ll be able to stick to payments. There’s no use in buying a home if you’re going to lose it in foreclosure.