The importance of your credit reportWhen you apply for a loan, your lender will look at several details of your personal finances, including your credit report. The better your credit, the better
Why You Should Consider An Investment Property As Your Your First Real Estate Purchase
Why You Should Consider an Investment Property as Your Your First Real Estate Purchase
Not ready to buy a home for yourself but want to take advantage of great market conditions? Consider buying an investment property! It's a trend that's taking over real estate, as savvy investors look to put their money in an appreciating asset. Here are five reasons to consider it.
1. Rates are crazy low. Lower rates mean more affordable lending, or more for your money if you choose to reach higher.
2. Because it will appreciate. According to CoreLogic, "The overall home price index (HPI) has increased on a year-over-year basis every month for seven years." The long-term price appreciation of real estate can provide one of the safest investments out there.
3. Because passive income is good. It's nice to know there will likely passive income now or in the future, and appreciation over time.
4. The Short-term Rental vs. the Steady Investment. The short-term rental market has opened up a new world of opportunity for investors. By buying in the right location—by the beach, near a ski resort, or in close proximity to a popular annual event like Coachella, you have the potential of making a significant return in a short period of time. Just be sure to check the local laws, as lots of cities have been cracking down on Airbnb and other services.
Some investors choose a safer investment that will be easier to rent long term. These tend to reduce the instances of vacancy, potential headache for the investor and can be a great part of a long-term retirement strategy.
5. Because it can help you buy the home of your dreams down the line. "Buying an investment property before your first home does not imply that you won't have the funds to purchase your actual home at some point," said Mashvisor. "In fact, investment properties that have been purchased wisely and have grown in value can offer you a sizeable amount of wealth and equity."
Denny Lee is the owner of The Yellow Door Team. His absolute dedication to customer satisfaction has propelled his team to #1 in a brokerage with over 400 active agents for the past several years runn....
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