Youth is the best time of life that is usually spent in traveling, education, job hunt, and finding the perfect person to settle down. Very few people think about investments at an early age. However, they should, as youth is the best time to make the right choice so when a person reaches 30’s or 40’s there is no tension on building a fortune because the very first home can be a wise investment property.
Taking The Right Decisions
Many people have a notion that whether buying a house is a wise decision or not. Indeed, it is a wise decision to purchase a house, but the wiser option is to rent it. The very first house can be rent out, and the extra income would be extremely beneficial. People usually rely on their jobs and considering the fact how fast the world is moving; there is no denying that this fast-changing world of the information technology demands to keep pace with it. Since a very long time, real estate is a great business opportunity for any person having a certain amount of wealth. People need to live, and for this purpose, they have to buy a house or rent it. Therefore, a person investing in real estate is safe in the aspect that the industry might die.
Typical Financial Timeline
Using the very first home, as an investment is not a good idea; the notions of the personal finance are against it. However, it can be if smart moves are considered. A Typical average American start his or her life by going to the college, finding the very first job, living in the first rental house, maybe move to a second or even third rental house depending on the circumstances, getting married, buy a home, have children, maybe buy another home, get further education, and then finally investments.
Five Reason To Invest In Real Estate
Following the timeline of the personal finance works for some people, but wise is to start investing at a very early age. If a person gets a good job at the age of 22, he or she can start investing from that time. Given below are five reasons to invest in the real estate:
1. Independent and Young
A person in his or her 20’s is extremely young. It is the time to explore the world and learn about life in general. The rules of life are simple at this age as the person is independent. There is no tension of supplying the college funds for the kids or buying expensive jewelry or clothes for the wife. Life is all about living it to the fullest.
However, as the person starts to settle down and when finally it is the time to provide the college education, going on a family vacation or anything. It suddenly becomes tough to survive. However, if right choices are a priority for youth, it is even possible to get the house of dreams with enough cash for the down payment.
2. Purchasing An Affordable House
The reports released by the National Association of Realtors depict that house prices are going to increase. A distressed sale is a common term in the real estate market. The bank is trying to sell some house, which under foreclosed category. This particular house has a value, which is comparatively at a loss. When the cost of the property in the certain area is very high, the distressed sales can lower it to some extent.
There is a market for this kind of houses on sale and the investment purpose; a house on distress sales would be purchasable at a much lower cost from the original market value. When the price of the real estate increase, it can be profitable for the person purchasing it. However, the important thing to consider is that the house under consideration for investment is affordable.
3. Additional Source of Income
Relying solely on the job is not a good idea, and it is wise to have a side income, which can assist in paying off the bills. Investing in a real estate property can be a lucrative option, and a person would be able to get some amount on the side in the form of rent.
4. Down Payment
When purchasing a house for the very first time, a person is required to give a certain down payment. The higher is the down payment, the better it is for the person making a purchase. However, for some people, it is not possible, so they apply for the FHA loans. The FHA loans help the people to purchase the house, who have low credit. However, there is one catch to it; the house purchased on the FHA loans has to be dwelled in. It means that the person buying the house through the FHA loans have to live in it. Therefore, in this case, a house with four units can be better where three units can serve as a source of side income through rent while the one remaining unit is the place to live and enjoy life without giving any rent.
5. Housing Growth In The Coming Years
The Research Institute for Housing America has released a report according to which there are expectations of 36% housing growth in the coming years. The reason for this is simple; the new immigrants want to become the homeowners. There is a change in the demographics with the change in the era of modernization and information technology.
Need a great realtor to get you in a home in Silver Valley? Why not check out Justin Hennessy today:
Justin Hennessey – Maple Ridge Realtor
22308 Dewdney Trunk Rd #805, Maple Ridge, BC V2X 3J2