Does investing in real estate pay off? The debate continues, some say buying a home is a smart move, but uncertain economic times cause others to see buying a home as high risk. But investing in a home is always a wise financial decision - as long as you make a sound choice, purchasing a house with characteristics that make it marketable.
1. Your home is a major life investment.
That's right. You will always need somewhere to live; you might as well own it. Think of your future and the stability you would like to offer to yourself and your family. Starting early and remaining disciplined means that someday rent will no longer be an expense, and you can rest assured that when you pay off your mortgage, you will have a permanent and comfortable space of your own. Changes or increases in your income can happen throughout your career, which can make your first-home mortgage even more manageable eventually.
2. Real Estate as an asset
Residential property is a great asset to have. You can rent your house to help service the mortgage and maintain the home. The equity of your home can be used to secure other loans. Paying your mortgage at the same time every month and on time can improve your credit rating and give you access to additional financing which can be used to go back to school, make additions to your home or even start a business.
Turn-key ready homes, such as developments built by WIHCON, promise to be a safe bet, as choosing a newer home constructed by a trusted developer makes for more accountability and better quality. Newer developments too, tend to favour modern designs and amenities with bells and whistles that turn out to be very impressive and add value to your home.
3. Inflation is Rent Friendly
As prices go up around you, rent goes up too, but your mortgage stays the same. Once you sign an agreement with your mortgagor your monthly payment and interest expense remains the same. Homeowners benefit in the long run if they choose to use their home as an investment property.
5. Buy the RIGHT home (and maintain it)
A well-maintained home can increase in value over time. Continuing to invest in your home by way of aesthetic improvements, expansions (where allowed) and other upgrades could mean a doubling or tripling of its value. It is encouraged that people take the attitude of "flipping" their homes every few years, doing the upgrades that can make them more comfortable or even prepare it for resale.
Buying into a development that has legal protection of its aesthetics has proven to be effective in preserving value. Keeping areas neat and uniform proves attractive if you decide to resell your home.
Keep up to date with routine repairs such as plumbing and electrical work, because ignoring them can lead to massive expense later on. A coat of paint here and there and maintaining aspects such as mouldings and fixtures help to retain your home's value.
6. You Can Pass It On To Your Children and Relatives
You may not realise it now, but the sacrifices you make today can secure your family's financial future. Imagine a situation where your family no longer worries about where they will live, or imagine the disposable income they will have as a result of not having to worry about rental expenses.
7. All it takes is a Start
It all begins with one step. Your first home does not have to be your last or ONLY but it can act as a stepping stone to where you want to be, helping you to achieve your goals one step at a time.
Securing your piece of the rock does not have to be hard, check out our Road to Homeownership eBook.