How To Make Your First Home A Good Investment
Purchasing a home is a big step! This is especially true for those who are looking to buy property for the first time. First-time home buyers make up 32% of all home buyers, and the median age of these buyers is 31 years old. Since first-time home buyers tend to be younger than repeat buyers, they may be concerned that they do not have the knowledge to make a good investment the first time around. Here are 3 tips for first-time home buyers that can help increase the odds that their purchase will pay off in the future.
Location, Location, Location
When it comes to choosing a first home, location should play a big role. One mistake that many make is purchasing a home for a great price that isn't in the most desirable area. While the upfront price may be less expensive, it also will not appreciate in value as much as property in a sought-after area. Some things that new homeowners should look for when purchasing their first home include a safe and established neighborhood, a good school system, and proximity to public transportation and freeways.
Can The Home Become A Rental Property?
Another thing that first time home buyers should consider is rental potential. Often people choose to leave their first homes because they need more space or because of lifestyle changes. While selling can net a profit, renting is also an option. Turning a first home into a rental property is a great way to create an extra source of income for years to come. Before buying property, it is a good idea to look at rental rates in the surrounding area. If they are low, then renting out the home in the future may not be a financially viable option.
Age Matters!
When it comes to buying property, age matters! Not the age of the buyer but the age of the home. Many first-time buyers assume that new homes are the safest investment. However this is not always the case. An older home that has been well kept and is full of charm may be a better investment than a cookie cutter home in a brand new subdivision. The best investment is a home that is built soundly and has solid plumbing and electrical systems. Sometimes an older home fits the bill better than one that is newly built.
Making a good investment when purchasing a home for the first time can be difficult. Before making a purchase, new home buyers should consider location, rental potential, and the age of the home.
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