Investing in real estate makes sense for several reasons and those were explained to me many years ago by my father. His words of wisdom echo in my ears today and I see how right he was.
Purchasing a home is for many the largest purchase they will ever make. With an acceptable credit score you can, at this point in time, purchase a home, townhome or condo at a relatively low interest rate. I can remember back in the late 1980's, when I moved back to the States, my father held several mortgages on homes he sold and the interest rates were just under 20%!
Owning a home is for most people less expensive than renting. Rental rates are once again increasing, making the goal of home ownership all the more attractive. Owning a home is a form of retirement security. Owning several rentals in addition to owning your own home is your very own retirement plan.
Many smart investors start off with a small home which they live in for a few years, at which point they purchase a somewhat larger home to move into and rather than selling that original home, they rent it out. If you do not have adequate funds to simply purchase investment properties, the idea of 'upsizing' over time might be the way you can become both a landlord and a homeowner. When we look at the stock market and the money people have lost there, I remember the wise words of my father and my maternal grandmother: "The smartest way to invest your money is in real estate." They were both right and they both owned many homes and pieces of undeveloped land.
When is the right time to begin? Right now! If you don't already own a home, there is no better time than now to begin. Give me a call today so we can discuss your goals and I can assist you in making that dream a reality! Investing in real estate does indeed make sense.