Many individuals think that investing in real estate is best left until later in life—a first or second home. While the life plan many think they’re set to follow goes something like college, job, rental, marriage, first home, kids, second home, investment property, there are other (more profitable) paths worth following.
Waiting to purchase an investment property can allow time to develop credit, put away some money, and enjoy the freedom from responsibility of course—but think of the rental income you could be making! There are a lot of arguments to be made for first purchasing an investment property, and Jason Hartman’s team is here to tell you about them!
There is value in youth
While many young people are busy spending money on living the life, they could well be focusing on building the life. When you’re young, you’re able to save money fairly easily because you’ve yet to acquire any significant expenses. This is the perfect time to buy an investment property from which to generate income. If it suits you, you’re still able to rent an apartment with friends while managing the home you own for tenants.
Assuming you qualify for a loan (which is getting easier and easier) you can be earning passive income in no time. Let the freedom of youth guide you toward building wealth.
The price is right
There are currently a lot of great deals to be had in real estate. Banks and owners are willing to hand over houses at a loss to them to be rid of them, which makes it a perfect time for you to scoop up a property on the cheap. In 2012, 21% of all real estate sales were foreclosed properties, so now is the time to buy for less than market value.
If you own a home but don’t live in it, you’re probably renting it out to someone. This means that you’re able to make a bit of extra money, even after mortgage payments and maintenance. If you purchase a property in an area where it is easy to find renters who are willing and able to pay, you’ll make a substantial amount of money with very little work.
When you’re young and your credit may not be the strongest, you may qualify for an FHA loan, which can help with a down payment. While this loan requires that you live on the property you purchase, it is flexible. You can purchase an income property with multiple (up to 4) rental units as long as you intend to make one of them your primary residence. This way, you’re making money from three units and your own living situation is taken care of. Win-win!
(photo credit: haveacupoftea via photopin cc)
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Investing While You’re Young (Don’t Let These Things Scare You)