Current real estate trends, however, imply an advantage to young people when it comes to buying their first property. Why should your first home be an investment property?
Most real estate agents agree that first time home buyers can do themselves a lot of good by starting on this plan early on. This allows people to save money and develop good credit as they haven’t yet been faced with other responsibilities.
The very idea of buying your first home goes against the general notion of personal finance; but if you think of the following points when making this all-important decision, you’ll understand just why your first home should be an investment property.
Real Estate is..Well…Cheaper – Relatively Speaking
Recent reports from the National Association of Realtors suggest that home prices are on the rise again. Most real estate markets however present bargains to potential home buyers in the shape of distressed sales. What are they? These are investment properties or homes that have been forced through a foreclosure by banks that are willing to make a sale even at a loss. Additionally, distress sales also drive down cost of properties in the area as well.
Buying a distressed home as an investment property in Arizona right now would ensure the investment is bought for significantly less than its market value, i.e. buying price will be low.
In most locales, increases in rent are fast outpacing home purchase prices, largely due to demand and tight loan application restrictions. Purchase an investment property and you’ll see monthly mortgage payments to be lesser than market prices for rent. In other words, buying a home in East Valley of Phoenix, Arizona will pay more in the long run when it comes to saving and re-investing.
The Research Institute for Housing America very recently produced a report that states home ownership among immigrants (nationwide) will soon account for about 36% growth in the housing market over the next decade.
We can see evidence of this already taking place in rapidly changing urban neighborhoods. After all, who would want to miss out on the possibility owning an investment property in Arizona, especially in a neighborhood whose house values are skyrocketing?
Your future self wouldn’t! Get in touch with your local real estate agent in Arizona and discuss the possibility of you owning a home in Phoenix.