Fruit for thought:
Should you buy your first home in order to live in it, or should your first home be an investment property?
Many people have the mindset that the first home they by should be the home they live in for a very long time. However, this isn’t always the best option for everyone.
Let’s say you want to live in a place where homes are very expensive and you can only afford to rent. However, in other areas in the country houses are much cheaper and you can afford to buy one there. You also may not know where you want to live long-term and are worried that buying a house to live in will be a poor investment if you decide to move.
If this is the case, your best option is to buy a small home in an area where renting is popular. That way, the rent will first pay off your mortgage, and will eventually become passive income once the mortgage is fully paid off.
Buying a house is a good investment is the market is steady and on the rise. If you decide to sell your house, you will still gain revenue. Like President Franklin D. Roosevelt once said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
What are your thoughts? Should one wait to buy a house until they have enough money to buy one where they want to live? Or should one buy a small house to rent out as soon as possible as an investment? Leave a comment to share!
