Are you considering purchasing your first home? Well, hold that thought for a bit.

Most of us tend to work tirelessly to become homeowners, but we forget about how the real estate market works. Numerous experts suggest individuals should purchase investment properties before buying their first homes. Why? Let’s find out!

Home Values Are At an All-Time High

One of the most convincing reasons for purchasing an investment property before your home is because they’re at an all-time high. The real estate market is always experiencing growth with home values at a rise every day. Home values rose rapidly in the past few years and are predicted to rise rapidly this year too.

A solid labor market, economic growth, and a huge millennial population looking to buy their first house or rental property are all variables influencing real estate. As long as the economy remains at current levels, real estate market trends will continue to grow. But if demand remains high, the measure of home sales will drop while prices will rise.

One of the main reasons first-time homebuyers are choosing to invest now, while the housing market continues to rise, is to gain leverage or equity on a property in a very short period.

Where You Want to Live Isn’t Affordable

Are you ready to buy your first house but can’t afford to live in the neighborhood you want? With rising home values, many first-time homebuyers may find it difficult to find an inexpensive property in the neighborhood they wish to reside in. If the location you want to reside in is too expensive, far away from your work place, or has a high crime rate, you might want to consider purchasing an investment property to rent out.

You’ll get your foot in the real estate market, generate monthly cash flow, and develop equity while renting in an area you want to live in until you can afford to buy a home in the place you desire.

House values in metro areas are quite high, making it impossible to purchase your first home anyplace near a major city. Rather than settling for a property, you don’t want because you can’t afford anything better, consider investing your money in rental properties.

Being a first-time homebuyer has its fair share of advantages. Rather than buying and becoming overwhelmed with a large mortgage payment, you have the chance to invest in a booming market, take advantage of the rising prices, and maintain your lifestyle too.

Invest In Monthly Cash Flow Potential

Consider renting out a first-time buyer investment property instead of buying a home and paying the mortgage yourself every month. You’ll start creating equity on your property right away without paying a thing toward a mortgage since someone else will pay it.

Furthermore, charging more for rent than your monthly mortgage payment can provide extra income flow that can be used to pay off debt, bills, rent, or save for your future home’s down payment.

Create Equity to Buy the Home You Desire

Another excellent incentive to purchase an investment property before purchasing your own home is to build leverage or equity. First-time house buyers have mainly two options and are purchasing their first home, which is typically a starter home in a less-expensive neighborhood or purchasing an investment property to rent out.

The latter allows landlords to sell, refinance, or utilize the rental’s monthly cash flow to leverage the purchase of their own house a few years down the line. When property owners borrow enough money to purchase a home they want to live in, selling their rental property or keeping it as an investment will allow them to qualify for extra loans or put a huge down payment to get a low-interest rate.

Tax Benefits of Investment Properties

Rental real estate offers more tax advantages than nearly any other type of investment. Landlords might lose thousands of dollars each year if they don’t take advantage of rental property tax deductions. So, why do rental property owners pay higher taxes than they should? Simply due to ignorance. Purchasing an investment property allows individuals to save on interest, claim all property expenses, and much more.

Secure Your Investment Property Loans in Ft Lauderdale with Atlantic Home Capital Right Away!

Considering the unbeatable benefits of investment properties, it’s lucrative to purchase one. If you’re looking to finance investment properties and considering securing investment property loans in Ft Lauderdale, reach out to the leading mortgage refinance company, Atlantic Home Capital.

Atlantic Home Capital is a renowned mortgage refinance company offering various loans options, including Investment Property Loans, VA loans, FHA loans, Jumbo loans, and more. Their team of experts ensures you secure the financing option you require without any obstacles.

Get in touch with them to obtain reliable financing solutions.

About the Author

Jade E. is a financial consultant for the past two decades. During her career, she’s worked with leading refinance fort lauderdale fl such as Atlantic Home Capital.