There is a constant debate in the finance realm about whether your home is a investment or not. We can argue each side until the cocks crow. Here are some articles if you interested in this debate…Why your house is a bad investment and the opposing side…Why buying a home is smart.
So you make the decision for yourself. In this article I want to explore some of the ways you can make your home a better investment if you do end up wanting to still buy a home.
- Buy a home that is bigger than your need or has multiple dwellings.
- This was one of my favorite things about our house purchase decision. My husband was still in school when we bought our home and therefore I was worried about taking on such a massive loan. I read a lot into home investments before we bought our home and came to the conclusion that we should buy something that we could rent out to help offset our mortgage payment. We have been able to cover our mortgage with our basement rental and has been an amazing boost to our finances.
- Buy, Live and Fix Up
- This is also another option if you want to buy a fixer up home and have the skills. If you can find a home that is cheap enough to make it worthwhile to pay for the renovations and make a good profit margin this may also be a fun idea to try out. You need to be willing to live in a crazy state while you try to get the house in order. You have to also consider living there for at least 3years before you can move out to avoid the capitol gains tax.
- Buy and Hold Strategy
- If you want to just begin to accumulate property you can avoid the expensive interest rate and the hefty down payments. Just move into the home for a few years live in it and then buy your next investment home and move into that. Its a pretty easy and slow way of accumulating property without going crazy.
- Short-term Rentals
- Buying a home in a area that is pretty touristy is also a fun option. You can easily rent out a room or the entire house when you are out of town. Short-term rentals also have a greater profit margin as well. There are definitely down sides to this but this does get your feet wet in whether this is something you want to keep doing.
So here are some of some options if you want to get your feet wet in the real-estate investment side or if you want to live cheaply or off set your crazy mortgage payments. We have loved our experience so far in having our rental and definitely know this is something we will be continuing.
Feel free to message us with any of your questions we would love to help out with buying your first real-estate property.