Owning real estate can be extremely lucrative, especially when you own multiple properties over extended periods of time. With Americans spending more and saving less every year, we have to find a way to save for retirement. If you have not started saving, you might consider real estate as an investment tool.
For little or no money down, you could purchase your first home and start making money today. Let's say you purchased a property for $400,000.00 and values go up by 5% per year. You would make approximately $250,000.00 in the first ten years. You are correct in thinking that your property will probably not go up by 5% every year, but more like 8.6% per year like it has over the past 40 years. For this week's example, however, I want to be conservative.
So here is the plan: This year, you buy a house for $400,000 and then in three years you rent out the property and purchase another one. Three years later, you repeat the steps. In only six years, you have three properties. Let's assume you increased your purchase price by $150,000.00 each time you purchase. In 20 years, all of your houses combined will be worth approximately 3.5 million dollars, and you did it all with no money down. Keep in mind that we are being conservative on the numbers and your profits may vary, but this is something that you need to consider if you want financial freedom during your golden years.
Happy House Hunting!!!
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