It’s common for nervous first-time homeowners to ask themselves if buying a home will be a wise investment.
The truth is, if you’re worried about your financial future and fear you may regret buying the property — you may want to consider making your first home an investment property.
By leveraging your property to earn rental income, you can ensure that your house pays itself off and help secure your finances.
Here are 4 reasons why homeowners should take the plunge and rent out their first home.
1. You’ll Earn and Save Money
Being young and independent is a liberating feeling, but it’s important to remember to plan for your future and save money, which can be difficult given the busy and exciting lifestyle of most adults who are first-time homebuyers. Renting out your house, however, fits this lifestyle perfectly; once the property is purchased, you can earn money renting it out no matter where you are in the world.
2. You’ll Have Another Source of Income
Once you purchase the property and find tenants, renting provides you with long-term returns on your investment that grant you another source of cash.
3. FHA Loans are Often Available
Many potential first-time homebuyers think they’re unable to afford a house because of the 20% down payment required for any property. However, in many cases, you can make the purchase even if you have less than 20% for the down payment by getting an FHA loan. These loans are intended in part to help those with less-than-perfect credit scores become homeowners; however, the regulations do state that you must reside in the property you purchase.
4. Help Drive the Real Estate Market
The Research Institute for Housing America recently published data claiming that immigrants will drive 36% of real-estate growth over the next two decades. With more people desiring to become homeowners, you can put yourself in a profitable position by becoming a property owner. This way, if increased housing demand makes the value of your neighborhood rise, you’ll be able to benefit.
Do you have questions about renting out your property? We have answers. Give us a call!