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5 Reasons Why Your First Home Should be an Investment Property

  • By Autumn Davis
  • •
  • 20 Mar, 2019
If you’re young and you’re looking to purchase a new home to live in, maybe you should consider turning your first home into an investment property. While most people wait until after they’ve bought their first or second home to begin investing in real estate, you could start much sooner than you think. We’ll explain why jumping into the real estate investing game might be a good idea.

Many people, especially in the wake of the mortgage crisis, have found themselves wondering: “Is buying a house a good investment?” One way to ease your worries about whether buying a house will pay off is by renting out the first home you buy. By turning your home into an investment property, you can leverage your less-than-perfect credit, less-than-perfect lifestyle and limited responsibilities into an investment. All it takes is a little bit of smarts and real estate shrewdness.

The idea of making your first home an investment goes against the general notions of personal finance. In fact it goes against how most people approach post-college life. The typical financial timeline for your average American adult might look like this:

College
First Job
First rental
Second/third rental
Marriage
Starter Home
Children
Second Home
Education
Investments
There’s nothing wrong with following that timeline, since it can give you plenty of time to build credit, save money and enjoy being young. But if you’re a 22-year-old college graduate with a solid job (good for you), waiting until you’re well into your 30s or 40s to start investing might not be wise.

Here are five reasons why you should entertain the idea of investing in real estate while you’re still young.

1. You’re Young

Being young and independent can be pretty amazing. You can make your own rules, live where you want, buy what you want and travel whenever you want. But that can get old pretty quickly, especially if you have other goals in mind.

All the money you’re currently spending “living the life” while living in a crappy apartment could be spent on something else. Saving money and building credit aren’t impossible and they’re part of what you’ll need to qualify for a mortgage loan (more on that below). Your current lifestyle might actually allow you to cut costs in a way that might not be possible later in life when you have larger obligations.

If you can learn how to effectively manage your money, you can come up with enough cash for a down payment.

2. Real Estate Is Cheap

According to recent reports from National Association of Realtors home prices are on the rise. However, most real estate markets present many bargains to potential buyers in the form of distressed sales. Distressed sales are homes or properties that have usually been foreclosed on that the bank is willing to sell at a loss in order to clear its books. These distressed sales also help drive down the cost of all properties in the area.

There are plenty of distressed homes for sale. Buying one would allow you to own an investment for significantly less than market value, especially as prices begin to rise. Before buying any property, however, it’s important to make sure you purchase a house that you can afford.

3. You’ll Have Another Source of Income

If you are purchasing a property that you plan to rent out, you’ll be able to profit off your investment as soon as you find tenants. Then you can take the money you earn and reinvest it in your property or use it to pay off other bills and debts.

4. FHA Loans

Industry standards say that you’re required to put at least 20% down when buying a house. But if you can’t afford to pay that much, you might be able to purchase an investment property with much less than that by getting an FHA loan.

FHA loans give people who don’t have the greatest credit the chance to become homeowners. If you decide that investing is for you, an FHA loan could be the perfect way to finance the purchase. There is one catch, however, FHA loans require that you live in the property you seek to purchase. To get around that rule, you can purchase a property with up to four rental units and make one unit your primary residence.

5. Changing Demographics
According to a report produced by the Research Institute for Housing America, homeownership among immigrants nationwide is expected to account for 36% of housing growth over the next decade. This is due in large part, according to the report, to the strong desires among immigrants to become homeowners.

Source: https://smartasset.com

Creating A Productive Atmosphere While You #STAYHOME

By Autumn Davis • 20 Apr, 2020

In countless homes across the country and the world, there has been a major shift to working from home - even for students. If you are working from home and trying to manage your children being home and doing school work, you may be at a loss when it comes to ensuring productivity. With a television across the room and no boss or teacher hovering, distraction comes easily. Here are some tips to create a space that enables productivity!

1. Light up your space!

Letting in as much natural light as possible to your at-home work space is the first step to making a better place to get things done. Your body works best with natural light because of circadian rhythms, which tell your brain to be awake and productive when natural light is around you. Natural light will help you feel alert and the vitamin D you will get from opening those windows will help boost your immune system.

2. Add minimalist decor!

You don’t want to crowd your work space, but it is important to decorate your space in a way that you will enjoy. Having a clean, organized space with a few quirks that will make you smile - like a favorite photo. Make sure any items you will need, like pens and highlighters, are within reach, so you are more motivated to stay put!

3. Make your work space only a work space.

It is important to train your brain to differentiate when it is time to work and when it is not. When we drive to work or school, it is natural for us to switch into ‘working’ mode, but when we work from home, it is hard to get into that mode. By only sitting in your work space when it is time to get things done, you will train your brain to be more productive when you are in that space.

4. Manage your cell phone use.

While you may need your phone to make work calls or check in with your teacher, it is important to set boundaries and stick to them. If you find yourself constantly wanting to scroll through social media instead of getting work done, try download an app that will limit your social media access each hour. If you don’t need your phone for work or school, try keeping it in a box across the room

3D Tour

By Autumn Davis • 05 Apr, 2020

Dossier Capital and I have been closely monitoring the ongoing circumstances regarding COVID-19 and are taking active steps in order to ensure our communities, Agents & Buyers are protected during these times.

I am available for video-chat tours and I have included links under my listings if you prefer to do a 3D tour of a property.

Please view " Agent Remarks-Safe Showing Update " at the bottom of this email to see the steps Dossier Capital and myself are taking to provide a safe environment in our homes.

Buying or Selling During A Pandemic

By Autumn Davis • 23 Mar, 2020

While it may only be temporary, the COVID-19 pandemic is touching everyone’s life in one way or another. If you are in the market to buy or sell your home, this can be a frightening time. With calls for social distancing and many businesses temporarily closing their doors, there is a great deal of uncertainty when it comes to real estate. If you are trying to buy or sell right now, here are some tips to help you make it through!

GO DIGITAL

Instead of opting for an open house, see if you can do a guided tour via Facetime or video marketing.

SANITIZE

If you are still allowing tours of your home or attempting to tour homes, make sure you are taking all sanitary precautions. Offer hand soap for your home tour and ensure you are sanitizing all surfaces a potential buyer may come into contact with, such as door knobs and counter tops. If you are touring a home, make sure you maintain social distancing practices with the agent and avoid touching anything you do not need to.

DOWNSIZE

Instead of having an open house, consider having only scheduled showings for your home or only participating in scheduled viewings if you are looking to buy.

STAY CALM, STAY SAFE

While there are still many options to buy and sell right now, stay calm and trust your agent. This is their specialty and they know the best course of action during this time. If they can offer digital options, they will let you know.

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