Making the decision to buy a home is a big commitment, but many investors see property ownership as a predictable and profitable option. Are you in the process of deciding to move away from monthly rent payments going to a property management company? Are you looking to make a financial investment in your own home as a wise use of money? Perhaps it really is time that you make the move to owning your own home.
Because it really is an investment, first time home owners need to be ready to invest in their purchase. Typically home buyers need to save 5% to 20% of the sale price of the home in order to qualify for a conventional home loan. While it may be tempting to begin the home buying process with as little as 5% saved, a 20% down payment immediately puts equity into a property when you make the purchase.
Home ownership allows you to make your monthly payments to your own property. Instead of paying rent to a property management company, a home owner’s monthly investment begins to increase the equity you have in your home. Individual home ownership also has the added benefits of allowing you to improve and redecorate your property without anyone else’s approval.
For people who already own their own home, purchasing additional property is often a wise investment. While most rental property owners start small with a single family home that they rent out on their own, some people who own multiple properties make use of a property management company to handle the maintenance, rent collection, and advertising for their apartments. Instead of dealing with the day to day tasks of property maintenance and rent collection, some of the most successful landlords realize that their time is often better spend finding new investment properties. The best property management company can allow you to grow your profits so that you can expand to luxury apartment communities or corporate housing opportunities.
Whether you decide to purchase a home for yourself, or move onto buying and renting out apartments and homes, investing in property is a good investment. On average, 45 million people move each year. Doesn’t it make sense to try to capitalize on the opportunity to provide housing for these millions of moving people? Individual home ownership or rental property ownership are both investments that will likely increase in value over a period of time.