Millennials have a different a unique mindset, they value mobility versus the stability other generations have. Not only that, but they would rather experience life in their youth rather than waiting to travel when they are retired. Obviously, money plays a factor as well as simply not wanting to settle down as soon as previous generations
It might sounds counter intuitive but buying a house can actually enable you to have a mobile lifestyle and here’s how.
Stop Throwing Away Money
Take a second to mentally calculate how much money you are throwing away in rent. It’s time to turn the tables by house hacking a.k.a. rent out your own rooms or purchase in an up and coming neighborhood for resale value purposes. When you live in the house you own you can receive tax incentives as well as be enrolled in a down payment assistance program, which amount to less than first and last months rent in an apartment.
Disclosure: The break-even point for closing costs, taxes, and interest on the home will require to you sustain/live there for five years.
Being Completely Mobile
If you absolutely don’t want to be tied down to living in your home then go the traditional investor-renter route. In the long-term you could make more money then living in your home and renting out other rooms.
However, there are a lot of responsibilities when you become a landlord. If you don’t want to take care of those responsibilities than hire a professional to manage your property
Quick tip: Calculate maintenance and management fees to make sure the investment will still be profitable.
Why is Property Investing Worth Your Time & Money?
When you start to turn a profit think about what the extra money could do for you. You could start paying off debt, saving for retirement, or go get that travel bug out, actually the travel bug is hard to get rid of.
To top it off first time buyers usually qualify for lower down payment mortgages. FHA loans only take 3 to 5 percent of the purchase price to get a home, which is a steal compared to 20 percent or more for other investors.
If you’ve got the entrepreneurial spirit then take the time to fully research and consider buying your first home as an investment property, so you can have extra cash.
Contact SOS Management & Property Services
Local: (858) 273-8800