This is not necessarily a good time for first time buyers to dip their toe into home ownership, as rising property values have left slim pickings for anyone who doesn’t want to have a massive mortgage hanging over their heads at the first time of asking. While it may seem that home ownership is out of reach, the fact of the matter is that investment properties still serve as an excellent stepping stone for first time buyers. It is possible to feel as though you are still paying rent, yet have access to a property that would otherwise been well out of reach financially.
That is exactly what real estate investors do, as they will pick up properties that they can rent out, which is essentially a way of making their money work for them while they rent another property. What ends up happening in these scenarios is that the investor ends up with the ideal home at a time when they are good and ready to move in. Many young couples feel pressure to buy a home the moment they get married and start a family, and all that does is put an added layer of stress on what is already a pretty tough time.
While there is no perfect time to buy a home, more and more people are waiting until they hit their 30’s before doing so, although the trend now is that these folks may have already had a few rental properties under their belt, which helps them build an asset portfolio between that first investment property purchase and the move into a real home of their own. A renter can cover a large portion, or sometimes all, of the monthly costs of the investment property, while the owner waits for the right time to move into the home of their dreams.
One of the biggest advantages of going this route is that you end up paying a fixed amount every month, whilst also potentially ending up with a home that is worth a lot more than you invested in it, which is a distinct possibility given how prices are soaring. There are also the tax incentives to consider, and there are some investors who use those incentives to further build their asset portfolio. Prices rise all over the board, but the savvy investor is left paying an amount that they are comfortable with, whilst also having a property ready for taking over at the right time.
Many first time buyers find that they end up moving every few years after that first purchase, which generally means that they end up paying huge closing costs every time. This is essentially throwing good money out with the garbage. Property investment is now considered the smart way to enter the real estate market, but before you buy, make sure that a qualified quantity surveyor Sunshine Coast helps you pick a property that will be a wise investment for many years to come.
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