Since the Great Depression of 2008, the housing market has risen by 11.4% in value with the median home price rising from $180,100 in 2008 to $200,700 in 2017. We can’t deny that it still hasn’t seen the heights of 2007 when the median home price was $217,900 but it is indeed getting better with time.
Millennials are more interested in real estate as they constitute 33% of the home buyers. This is mainly because this particular generation has been able to save enough money to afford the down payment. Moreover, they do realize that investing in real estate is far more rewarding as compared to other investments with property prices on a continuous rise.
Investing in real estate is a good idea or not depends on a number of factors but we will highlight the obvious benefits for you:
Cheaper than Other Investments
A recent report from the National Association of Realtors reveals that home prices are steadily on the rise. But, there are exceptions for potential buyers. There are plenty of real estate markets which offer distressed sales and foreclosures.
If you aren’t familiar with distressed sales than these are such properties and homes which have been foreclosed by the bank which is willing to sell them at a lower price to clear its books.
You can easily find distressed homes for sale in Dana Point CA and other parts of the country. This allows you to own investment by paying an amount which is significantly less as compared to its market value. You can rent it out or sell it sometime later to earn profit from this investment.
A Steady Source of Retirement Income
Usually, the retirement income comes from pensions, social security, annuity or investments in rental properties and dividends. If you already have a plan to retire early, you must create alternate income streams in order to lead stress-free retirement days.
After creating multiple income sources for yourself, health insurance and monthly bills will not be a burden. You’ll have the liberty to travel and live life to the fullest.
You can start by buying a house and renting it out by covering the mortgage soon. The rent from this house can help in buying another house. You can even think of renting a few rooms in your house to cover the bills and other monthly expenses.
The United States of America is home to a number of immigrants who have settled here and are contributing to the economic and social development of the country. These immigrants are very much inclined towards home ownership and have a strong desire to have their own houses in the country.
According to a report, the immigrants will contribute 36% to the housing market growth. The changing demographics should push you more towards property ownership whether it is buying a small condo or the luxurious homes for sale in Alamo Ranch SA.
Owning multiple private and investment properties of your own will benefit you in the long run. They serve to be a steady source of income and can improve your financial worth. Good news is that there are a number of startups who allow individual investors to make small, medium, and large investments in real estate through crowdfunding.
Low Maintenance and High Returns
Usually, it is the tenants living in the house who pay for its maintenance and the upkeep. Because they are using your property, they are responsible for keeping it in the best possible condition.
However, there are times when you, as the owner of the house, need to take the responsibility of carrying out a maintenance task. This is usually done when you rent the house to another tenant after one has moved out.
Such expenditures involve small tasks like painting, taking care of the plumbing and electrical outlets, and thoroughly cleaning the house. All you need to do is hire the best Atlanta painting contractor or the top service providers in any other city to carry out the task for you. After paying a reasonable amount, you can enjoy the best results from these service providers.
The Bottom Line
While we have already established the importance of purchasing a second home for investment purposes, the issue at hand lies which place to choose to buy this home. There are some clear winners when it comes to real estate markets, giving you a better chance to earn significant profits.
You will find the best attractions in Atlanta, Orlando, Dana Point, Alamo Ranch, and other such places. By choosing these cities, you can even rent your property for Airbnb and earn through the occasional guests which come for vacations. More than 28% of homeowners are already planning for a vacation home for extra income, are you?