Every newly married couple has a dream to buy their dream home. It is supposed to be their center of a new journey full of new possibilities and adventure. What can be a better idea than turning their new home to an investment property? Experts say that it is a smart way to leverage your limited credit, resources, and responsibilities into an investment.
At the time of the mortgage crisis, some may fear that it would be too risky to put the hope on purchasing a new home. I don’t say that the fear is unreasonable. But, if you consider the reasons I put below, you can see that purchasing a new home and turning it into a new investment would make you a winner.
What is Investment Property?
An investment property is a real estate property bought to collect a return on the investment. The return could come through either rental income or the future resale.
Another Source of Income for You
At the beginning of starting a family, it’s natural to assume that there are just two of you- you and your partner. So, you should have plenty of space to live without a kid. Isn’t it smart to make a good use to this empty room that you don’t have any use? You can rent the extra space to another couple like you and earn some valuable instant cash.
And look at the bright side here. Analysis always indicates that living with more people will make you happier and friendly. It also strengthens your home security. Of course, you should give a proper background check on people before renting them your house. If they are your acquaintance, it’s a double benefit for you.
You are Young and Fresh
When you are young, you have less responsibility. You have no kids, and your job is less burdensome than many older people. So, this is the time you should focus on something new, something fresh, and something good that has a potential future. Even if you don’t manage to make things the way you want to, you have enough time to correct yourself.
So instead of paying crappy rent, why not put your investment together and buy a home? If you make up your mind, you can save money and build credit. Remember that you will need these to qualify for a mortgage loan. My point is, with a little extra effort and little additional discipline, you can make a solid start.
Can Claim Deductible Expenses with Investment Property
The downside of an owner-occupied property is that you have to pay taxes. On top of that, there are a variety of expenses you have to bear. On the other hand, with the investment property, you have a chance to claim maintenance costs and interest payments and additional costs like this as a tax deduction.
Real Estate is Cheaper than You Think
Are you familiar with distressed sales? Well, when a seller needs urgent money to pay debts or other emergencies, he/she may want to sell his/her asset or property on a quick notice. In many cases, he/she had to sell it at a lower price. The price could be much lower than the current market price.
The good news is there are plenty of distressed homes out there for sale. So, if you can manage to contact the right real estate agent, you can manage to buy a home at a surprisingly cheap rate.
Canada welcomes a large number of immigrants every year. These immigrants are going to make a big difference in Canada’s economy. Recent statistics show that most immigrants want to buy their own home. So, the area you are choosing now to live maybe not that developed, but it could transform into an affluent neighborhood in the future.
Younger people should be involved in Investment property and insurance policy more and more. Rear estate investing is a profitable business for young people like you. If you don’t know where to begin, you could take advice from a financial advisor. An advisor can explain to you all the options out there and help you to choose the best-suited option for you.