A 2016 report found that the U.S. homeownership rate across age groups is at 62.9%. But homeownership rate among millennials is only at 34.1%. It seems that very few young people, in spite of their income, are buying homes. If you’re part of this generation, you may want to think about buying property while you’re young. Here are a few good reasons to do it.
You can get rental income from the property.
The property can become a good investment. A rental property can provide you with a steady source of income. But make sure you choose the tenants well. The property can’t make money if your tenants are delinquent with payment, or end up damaging the home.
You can renovate an old property and sell it for a bigger profit.
An option to rental income is a one-time profit from reselling the property. If you prefer not to take on landlord duties and worry about maintaining the rental property, renovate an old home and put it back on the market. You can earn a bigger profit from reselling.
The key to getting a good profit is choosing a good location. A rundown apartment in a good neighborhood or emerging community can attract buyers, giving you lucrative offers.
You learn to manage your finances.
Mortgage payments allow you to spend toward your future. Instead of wasting money on your rent, you can start to fund for your retirement with an investment property. But evaluate your mortgage options carefully. Find the ideal lender with good rates by seeking assistance from a reputable mortgage service, which will match you with the best lenders.
When you’re ready to buy your first home, know the current mortgage rates and property prices. Both will determine whether you can manage monthly payments and gain a profit.
Home ownership is a good thing. If you have the down payment and can meet the mortgage, invest now for your future.