Actually, all of the real estate you buy should be a good investment, but first time home buyers often overlook the investment for the emotional pull of upgrades, proximity to friends and decor. A home is a personal thing for sure, but the reality is- buying a home is not like finding that one true soulmate you will spend your forever with. Rather, there are many houses in any given area that one could buy and be very happy living in.
A house is a shell of wood, brick and windows- it’s the people that make it a home. It’s the memories and the drive home after a long day of work. It’s calling it “my place” and spending time and money and energy fixing the faucet and mowing the yard or putting your favorite colors on the wall. It’s waking up there and creating your own space.
When buying home for the first time it is especially important to get a good investment because chances are, you won’t be staying more than a few years and you’ll want the equity from the home to buy your next place. Buying a home that is a good investment can be a major part of a solid financial standing. The tax benefits and equity earned can have a huge impact for people.
I bought my first house when I was 20. It was not a nice place, but it was a good investment. I actually bought it to flip. I figured I would take the money I would make from flipping it and buy a home to live in but my wife wouldn’t have it- she wanted out of the apartment lifestyle as soon as possible. So we remodeled and moved in. I sold the house a couple years later and made around $40,000. Not a ton of money, but for someone in their young twenties who is starting a family it’s a fortune. I could not have saved that much by putting away a little from every paycheck and clipping coupons.
Real estate has been my best investment. The stock market hasn’t been bad for me, but the investment/return on my real estate blows away my stocks. I can buy a home for zero out of pocket and make tens of thousands of dollars just by living there. Everybody’s paying a mortgage, either their own or the landlords. I might as well be the one making the money, right?
If you are in the market to buy, or have been sitting on the fence, undecided about whether to buy a home thake my advice, find one of the best Realtors in your area and let them help you find a good, solid investment as your first home- you’ll be glad you did.