Are you considering buying an investment property before first home? Many believe buying a primary residence before investing in real estate is best. However, compelling reasons exist to turn this conventional wisdom on its head.
Investing in property can be an intelligent financial decision, even if you still need to purchase your own home.
Whether you’re a first-time or seasoned investor, this blog will provide valuable insights into a unique approach to real estate investing.
Should I Buy Rental Property Before Primary Residence?
It all depends on your situation. It may be a smart move if you already own a home and have the financial resources to purchase an investment property.
When investing in real estate, there are numerous benefits to purchasing an investment property before buying a primary home.
- The most significant advantage of buying an investment property before the first home is the potential for rental income.
- An investment property can generate a steady stream of passive income, which can help ease the stress of making a mortgage payment each month.
Ultimately, whether or not buying an investment property before purchasing a primary residence is right will count on your financial situation and long-term goals. Research and crunch the numbers to determine if this approach makes sense.
Are you intrigued by the concept of investing in a rental property? Check out our guide on FHA loans for investment properties before purchasing your first property.
Why Should People Buy an Investment Property Before a Home?
There are various factors why people choose to buy an investment property before purchasing a primary residence. Here’s a sneak peek of the key benefits:
- Housing Prices: People find the housing prices in their area expensive and want to take advantage of lower prices in the residential investment property market.
- More options: Investing in real estate keeps options open. You can buy a home when ready or continue renting the property for income.
- Lifestyle flexibility: Buying an investment property first allows for lifestyle flexibility. You can move around or travel without worrying about being tied to a single home.
- Retirement Income: An investment property can provide an ongoing source of income during retirement years. The revenue generated from the property can help cover expenses and provide a reliable income stream.
- Source of Income: Buying an investment property can provide a steady source of income when rental rates are then the mortgage payment. You can use the investor’s monthly extra cash flow to cover other expenses or save for future investments.
- Property as collateral: An investment property can be collateral for other mortgages, such as a business loan.
- Bargain in the Real Estate Market: With some research and patience, investors can often find good deals in the real estate market.
Benefits of Buying an Investment Property Before First Home