Woodlands Real Estate Tip: Buy yourself a new home & become an investor at the same time!
You've always wondered about it. How to become an investor?
So, how do you take advantage of this?
An interesting way to get into the property investment game is to buy yourself a new home. What? Buy myself a new home? Yup. And lease out your existing home or apartment or town-home.
What are the benefits to this approach?:
1. You get to go shopping for a new home!!! That's exciting... you can upgrade to a newer home or a smaller or bigger home, whatever suits your current needs!
2. You know the investment home you're going to lease out as you've lived in it for years yourself! This is crucial. Most new investors step into so many unknowns when they buy their first investment property as they're not normally of the same quality that they live in themselves. The costs tend to be unwelcome surprises that are discovered after you've already closed on the deal. Too late now!
3. The new home that you'll be buying for yourself will be newer and will have less issues and you'll be very careful with this purchase as you're going to live in it yourself so you automatically reduce the risks you'll be prepared to take on.
4. You should be able to obtain a better quality tenant... or, at least, one from a similar social status as yourself as they'll be leasing the home you're vacating!! This also reduces risk as you're dealing with a social sphere that you understand much better.
Lease out the apartment!
What are the benefits of being a landlord? The three main ones are:
1. You gain from the asset appreciation of the home/s you're leasing out.
2. You gain from an appreciating income stream from your tenants. Small annual rent increases is the best way.
3. You gain from the equity building up in the home as your tenant pays down the note.
ps - If you'd like to discuss investing or if you want an investment analysis done on a potential purchase, we can help.