When people are young and looking to purchase their first home, the one thing that a lot of people don’t see is that their first home is an investment property. While most people want just to get settled in and buy a better home once they’ve gathered themselves and their career, we think that it shouldn’t be the case.
You can start much sooner when investing in real estate than you think. In this article, we’ll explore the reasons as to why your first home is an investment.
Real Estate is Cheap
Cheap? Real Estate? People don’t expect these words to go hand in hand, but that is the case. There are a lot of distressed sales for homes and properties that have been foreclosed by banks.
These properties go for an often cheaper price, and they might even be willing to sell at a loss to clear its books. Aside from these instances, real estate, in general, IS cheap because of the prospective returns you’ll get in the long run. If you’re interested in real estate that’s worth it, we suggest you take a look at house and land in NSW.
When you’re young and independent, you can live wherever you want, you can buy whatever you want, and you can travel wherever you want; but what’s better than doing those things? You can invest in a lot of things.
If you live in a miserable single room apartment because you want to spend it on other pleasures, we won’t be judging you, but investing for a future will always be better. Thank us when you’re older.
If you’re young and just starting, we’ll assume that you won’t be living with a partner, but you still won’t have to live in your first house alone. There are a lot of options nowadays, like opening your home to the possibility of an Airbnb.
This way, you’ll be earning an additional income that can help you with expenses or help you get a return of investment from the money you spent on the house.
Things like the housing crisis of 2008 were not predicted and unavoidable. If you invest when you’re young and go through a long-term buy and hold strategy, the market crashing wouldn’t be a problem for you.
Instead of panicking like the people who just invested in real estate in their 50s, ride it out. Real estate value is always definitely going to go up, and unlike the stock market, you won’t have to stress out as much when it comes to always being updated.
Little to Lose, Lot to Gain
Last but not least, this is something that most young adults do not think of. When investing in your first real estate property, it’s not going to be the one that makes or breaks you for life. Instead, you’re getting ahead of the pack by gathering experience and wisdom in the field while you’re still young.
It’s essential to start as early as possible, even if you aren’t sure of your decisions, as long as you follow the key elements when it comes to investments, you won’t regret it.