If you’re thinking about buying your first home, you probably have a lot of questions. What if, instead of just acting as a roof over your head, your first home could be an investment property? While you might not think this is a good idea, why not start investing now, while you are still young and don’t have as many obligations?
Is Buying a House a Good Investment?
As a first time home buyer, you will have access to special grants and programs not available to repeat buyers. Buyers are also eligible for extremely low interest rates that make buying a home an especially attractive option for young buyers eager to plan their financial future. All it takes is a little financial know how to set yourself up with an investment property. Here’s a few reasons why you should consider making your first home an investment property.
- You’ll Have a Source of Income–renting out the property will bring in reliable income every month.This can be put into another property or to pay the mortgage on another house that you can live in.
- You Can Minimize Living Expenses–when you rent out your investment property, you can save that money, putting it toward a future property, or paying your own bills with it to keeps costs down. This frees up additional capital for further investments, or just to grow your savings.
- You’ll Get Tax Benefits–owning an investment property comes with a variety of tax benefits, like the ability to claim expenses such as maintenance costs and interest payments as tax deductions.
- Real Estate is Relatively Cheap–If you know where to look, you can find affordable investment properties from distressed sales. Often, these are foreclosed homes that the bank just wants to get rid of. Sometimes they need work put into them, but not always. You can snatch one up for a good price, and turn it into an investment property.
- Leverage Your Property into Future Investments–owning an investment property makes good financial sense. In fact, you can turn these types of properties into future wealth, either flipping them for a profit or just keeping as a rental property.
Your Hamilton real estate can give you a source of equity that you can use to invest in the home itself, or for something else. As you build equity in the property, it’s value increases. Special loans exist specifically toward the purchase of rental properties, also known as multi-family financing. Borrowers can benefit from affordable interest rates and high maximum loan amounts. These loans can be used to rehab properties, stabilize them or just add value. Any eligible borrower can benefit from one of these loans, from beginners to seasoned real estate professionals.
Income properties can be a lot of work, but they bring with them a great deal of benefits. Browse your local real estate listings to get an idea of what’s out there.
Disclaimer: This content does not necessarily represent the views of IWB.
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