It is no secret that owning your home is advantageous to renting. Property rights, sole land ownership, home equity, saving on living expenses, and long term investment appreciation, buying your own place is one of the ultimate financial accomplishments in life, and has been for centuries. However, depending on several scenarios or financial variables, it may or may not be the right time for you to buy property. Factors such as annual income, how long you plan to live in current area, commute time/expenses, monthly payments vs renting, interest rates, credit score, geographical location, local housing market, neighborhood quality, national housing market cycle, etc. should all be considered.
Click here to determine if renting or buying might be more suitable based on your situation:
In some cases, it may be more financially advantageous in the short to term medium to rent. Perhaps your annual income or credit score aren’t as strong as they will be in a couple years, or you may relocate to another city for a better job down the line, or you anticipate a drop in housing market prices in a few years. After considering mortgage payments at current market prices, interest rates, closing costs, and more, you may find renting for a few years to actually be a more financially sensible decision.
History has proven time and again that investing in real estate is one of the safest investments over the long term. History has also shown that there will always be two types of people: homeowners and renters. Investing in a rental property and renting to tenants is a reliable and potentially lucrative venture. In addition to the recurring monthly revenue flow, tenants’ rent payments also help to mitigate the landlord’s underlying mortgage payments and assist the landlord building equity in the property.
Like buying your own home, investing in a rental property has its own set of risks largely depending on current housing market cycles and prices, location, rental housing demand, and of course tenants’ rights/landlord protection.
Alternative Asset Investments:
>Peer-to-Peer Lending (Prosper, LendingClub)
>Affiliate Marketing/eCommerce websites off Flippa
>Lease/rent heavy equipment