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5 Reasons A First Home Should Be An Investment Property

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We all know how difficult it is to get that first foot on the property ladder, and for many Australian couples, buying to let is the preferred way to make a property investment. There are many benefits from using your first home as a form of investment, and if you are planning to buy your first home any time soon, here are just a few of the reasons why renting it out makes perfect sense.

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  • Make Your Own Life Timeline – Traditionally, a person would only begin to acquire real estate as an investment in their later years, perhaps with their first mortgage about to finish, it is a wise move to buy a property with a view to renting it out. Yet, there is no reason why you can’t rent out your first home, and with someone else paying the mortgage while you receive the value increase, you will find it much easier to manage. Once you have found the right property, contact mortgage brokers Central Coast homeowners trust, and you can make an offer.
  • The Right Price – There are many repossessed properties, and banks prefer to take a loss and auction the house. There are many online resources to help you locate real estate auctions, and if you choose your location well, you should be able to ask for top rental rates. Most properties need some remedial work, which is one reason why the price is so low and by joining forces with a local builder, you will soon have the house looking like new.
  • A Secure Retirement – If you use your first home as an investment, you will reap the benefits when you are approaching retirement age. If, for example, you ended up with 3 properties and they are all paid for now, with rental coming in every month, your retirement is secured. The first 2 or 3 years of paying the mortgage can be challenging at best, yet with the monthly rent you receive, you won’t have to make too many sacrifices.
  • Boost Your Credibility – Renting your home out will give you a good standing with banks and finance companies, as they can see that you have multiple sources of income. This will help when you are ready to start your own business and require funding. There are websites you can check to know more about how to build a healthy credit rating, which are recommended sources of information for any potential investors.

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  • Aim For A Second Home – If, after 5 or 6 years, everything is going well and you have a regular income from the property, you can think about purchasing another property and repeating the exercise. As any financial planner will tell you, acquiring wealth requires careful planning and the sooner you get your foot on the real estate ladder, the better.

If you would like to know more about purchasing real estate as a form of investment, an online search is the best place to start. After you have crunched all the numbers, you can begin to look at potential properties.

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