First-time home buyer tips.
First-time buyers are usually in an enviable position. This is because they often have lower levels of debt than those already on the property ladder. Yet, they may also have lower levels of available upfront capital and savings. While many people are still hesitant to hop on the property ladder until they find their forever home, there are some great reasons to think of the first home as an investment property.
Where you want to live is not always affordable
Everyone has a dream suburb they’d like to live in. Whether it has great schools or is close to work, if the area you love is too pricey, you can consider purchasing an investment property until living in your dream area is right for your situation.
Real estate is (reasonably) cheap
According to recent reports from the National Association of Realtors home prices are on the rise. However, most real estate markets present many bargains to potential buyers in the form of distressed sales. Distressed sales are homes or properties that have usually been foreclosed on that the bank is willing to sell at a loss in order to clear its books. These distressed sales also help drive down the cost of all properties in the area.
You’ll have another source of income
If you’re purchasing a property that you plan to rent out, you’ll be able to profit off your investment when tenants move in. From this, you can take the money you earn and reinvest it in your property or use it to pay off other debts.
When you’re purchasing your first property, remember to secure the right insurance. Safeguard your property with quality homeowners insurance. Contact the team Lou Aggetta Insurance Services in Pleasant Hill to get started on your tailored policy.