Do you feel like home ownership is out of reach financially? Or maybe you don’t want to sacrifice location and amenities to purchase a home in an area you can afford, but still want to reap the benefits of being a homeowner?
According to a recent Consumer Insights Report from Mynd, there’s a portion of Millennials and Gen Z buyers taking on homeownership in a slightly less conventional way, and it’s something many potential homeowners should consider.
In this week’s video, Dan shares about the importance of investing in real estate and how for some buyers, making your first real estate purchase an investment property rather than a primary residence may be the key to “having it all.”
According to the Mynd Consumer Report, a lot of young buyers are purchasing a home to use as a rental rather than moving into it themselves. This isn’t a new idea, but it has been rapidly gaining popularity in recent years. Right now, almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.
Why Consider Making Your First Real Estate Purchase an Investment Property?
This “investment first” strategy allows buyers to continue living in their current location, like the city apartment or a neighborhood that they know and love, where they couldn’t normally afford to buy. However, instead of giving up on the benefits of owning a home, they buy a home in a more affordable area with the intention of renting it out.
This way, homeowners are getting the best of both worlds. You get to live where you want but still reap the benefits of home ownership, earn passive income, and diversify your assets.
As a homeowner, you build equity and long-term savings, you have a fixed payment month-to-month that can be consistently offset by rental income, you can build your credit over time, and you provide yourself with more options down the road.
The Bottom Line
If you’ve been considering homeownership but are overwhelmed by the financial component or maybe don’t want to sacrifice in order to get there, purchasing an investment property to rent may be for you!
At Hamilton & Company, our team has vast amounts of experience assisting investors in diversifying their portfolios. We would be happy to assist you in purchasing your first rental company in the Upstate. Give us a call today to learn more about investment properties in your area!
Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7.