Why Is Buying a Home a Good Investment?

By
Real Estate Agent WV0026375

If you play your cards right, a home can earn you more than what you paid for it. Buying a home and using it as a rental is one of the surefire ways to make money. Flipping houses and buying homes in neighborhoods increasing in value is also effective. If your community is developing quickly, you can sell the house at a profit, even after having lived in it. Recouping your initial expenditure and more is what makes an investment. There are different ways to make money off a home, each effective in its own right.

 

For instance, real estate in Lewisburg, WV, can be a great investment. You can rent it out for a considerable amount of money each month. This provides steady income off of the property. Some homes have potential for renovation and upgrades. Once you get that done, you can sell it for thousands of dollars more than what you spent on it. Some people’s businesses work solely off of flipping houses, so you know it can make a good profit.

 

Even if you occupy a home you have purchased, you can still make a profit off of it later. Certain neighborhoods have the potential for properties to appreciate years down the line. The profit that you can make in these cases can be significant.

 

In pretty much all cases, real estate does not depreciate in value. This makes it a good place to sink your money. It is important to know how to go beyond keeping your money safe in real estate to making money off it. That’s what this post is going to teach you how to do.

 

 Real Estate in Lewisburg WV - Learn why investing in a Lewisburg WV home is a surefire way to make money.

 

How to Make Money From a Home

 

There are a few broad paths by which you can make a profit off of a home. You can make money whether you live in the home or not, and that provides you with some flexibility.

 

1. Rental home: Not everyone has the money to buy a home for themselves. This creates the market for rental properties, which a large number of people occupy. You can buy a home and use it as a rental property. This way, you receive consistent monthly or yearly income. Profit off a rental property is more of a long term affair, so you’ll have to be patient. This is particularly the case if you have already paid for the home in full. Another option for rentals is to finance the house and pay the mortgage every month. Your tenant’s rent will cover the mortgage, with some profit on top of it. This way, your client bears the burden of the mortgage. The main downside to this method comes in if your tenant’s payments are no longer consistent. The burden of the mortgage transfers to you, and this can unsettle finances. In some cases, you can even rent out a basement apartment while living in the same building. The rent won’t be as much, but this is a great way to get the best of both worlds.


2. Flipping properties: Buying a home, renovating it, and selling it for a profit is known as ‘flipping’. Flipping a home is a short-term investment on a home that will yield large profit faster than a rental. For instance, if you search for homes for sale in Lewisburg, WV, you may find some selling at good prices. This may be because the owner doesn’t wish to put in the effort or money to make some critical repairs. These kinds of houses are perfect to pounce at. You can make the needed repairs, and even put in some home improvements that add value. This way, you can sell the house at a profit way above what you put into it.


3. Selling in improving neighborhoods: Some communities develop faster than others. When amenities like roads improve in neighborhoods, this can increase their value. Building structures like hospitals and schools increases the value of surrounding neighborhoods. You can buy a home in such areas and hold onto it until it has attained considerable value. Even better is to live in such a home until it has gained enough value to make a profit off of. Knowing which neighborhoods are best to buy in can be difficult if you don't pay attention to trends. This method can be especially effective when you pair it with flipping. You can buy a home in a developing neighborhood and sell when it is well-established. This can increase profit margins by a significant amount.

 

Best Realtor in Lewisburg WV - If you’re wanting to invest in a Lewisburg WV home, Call Rebecca Gaujot at 3304-520-2133.


Tips for Investing in a Rental Home

 

Buying a home for a rental property is the most straightforward way to make a home investment. It takes some time to get your profit off of it, depending on how you decide to finance it. But it is one of the most straightforward ways to make a profit off of a home. Here are some tips to help make your home investment profitable.

  • A property manager will make your experience easier but will reduce profits. It’s almost definite that your tenants will have some issues in the home if they live in it long enough. If you don’t have the necessary skills to help out with any repairs or fixes required, you’ll need a property manager. This way, the burden of any issues is off of you, but you’ll have to pay the property manager for their services.
  • Down payments are higher than owner-occupied homes. You can get away with paying a tiny percentage for your down payment on a house you plan to occupy. But for a rental property, you’ll need to pay as much as 20% of the total cost of the home. It’s important to know this before getting started.
  • Get landlord insurance. This is essential! Damage to your property or injury on the premise due to structural issues will be covered by this. The premium is worth paying to keep your investment profitable.
  • The location is very important. When looking for where to buy an investment property, you need to make sure demand is available. Areas that people are actively moving into are perfect, as they need places to live in. Having a rental property ready for occupancy is smart business.

 

Lewisburg WV Real Estate - Here are some effective tips on how to make your Lewisburg WV real estate profitable

 

Places like Lewisburg, WV have homes for sale all the time. These homes are perfect for investment opportunities. The best part is that if you fail to make a profit, your money is safe in real estate. Rebecca Gaujot, Realtor, can help you find the perfect homes to get your investment started in.

 

There’s money to make if you know where to look. Locations like Lewisburg, WV, have potential, but you'll need someone with expertise. Call Rebecca Gaujot, Realtor, at 304-520-2133. She'll find you a home that will be a solid investment.

Posted by

Your Real Estate Connection for Lewisburg, WV and the Greenbrier County

 

   

 

If I can assist you in any way with your real estate needs in Lewisburg, WV, Greenbrier County or the surrounding areas, please feel free to contact me by phone at
(304) 520-2133
, email
or visit my website at

www.lewisburgwvhomesforsale.com/

 

 Fathom Realty, LLC

Martha Hilton, Broker

 

 

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Comments (13)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Rebecca such smart advice I find it interesting how many people it takes a long time to comprehend and follow this great advice, Endre

Mar 24, 2021 09:25 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I always have to remind my clients that they still have to love the home like it's part of their soul to really get the most out of it. Otherwise, your street she just live anywhere that fits the moment

Mar 24, 2021 09:38 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

@Endre I would agree with that but it baffles me that it takes before as long as it does, but it does in fact take that long in my experience.

Mar 24, 2021 09:39 PM
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thank you for sharing this, Rebecca!

Mar 24, 2021 10:14 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Mar 25, 2021 04:02 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Rebecca... so great to "see" you. It feels like it's been some time since I last saw you here. No matter how you cut it, statistics show that the best way to build wealth is through real estate. Great advice here.

Mar 25, 2021 04:24 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Rebecca - yes, it is nice to "see" you on the pages of ActiveRain and while real estate is definitely not a game, playing ones cards right is definitely a part of a long term strategy.  Wise words.  

Mar 25, 2021 05:53 AM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Hi Rebecca, Good to see you here. Great topic. There are a lot of folks that would love to do these things but never jump in. I think your advice here would help more of them feel more comfortable in pushing the start button. 

Mar 25, 2021 07:15 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Rebecca! You are so right. These are great points for consumers to be aware of.

Mar 25, 2021 08:45 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Rebecca and great advice to share and it is so true, It the American Dream and a great investment.

 

Mar 25, 2021 08:58 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hope all is well it has been a while since we connected Rebecca

Apr 27, 2021 11:48 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Rebecca Gaujot, Realtor® - I miss seeing you here on ActiveRain and I hope you and your family are doing well. I think of you often and wanted you to know, you have always been the real deal and a true inspiration to me. 

May 04, 2021 05:51 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Excellent and informative post Rebecca.  People seem to be so caught up in prices right now they forget Real Estate still the top rated for Investments.  Mark

Jun 07, 2021 03:08 PM