Building Personal Wealth One House at a Time
If you are considering investing in real estate, build your portfolio one house at a time.
Home buyers who intend on living in a home have great benefits that do not apply when purchasing a home for investment purposes.
1. Lower monthly payments because of better mortgage interest rates
2. Lower down payment requirements
3. Intimate knowledge of the repair history and the quirks of the house
When it is time to move, consider keeping your current home to start building your investment portfolio. Most people move every three to five years. If we keeping our current homes as we buy new ones, in twenty five years we will own more than seven properties generating passive income. We may even trade up a few times and own several apartment buildings or commercial properties.
So next time you are ready to move, take time to consider whether or not keeping your current home will help you succeed in building the level of wealth you need for a secure future. Live in your future investment property first. While it may not be the right time to sell, it may be the right time to rent out your home as you move into a new one.
Related Articles: Beyond Cash Flow– Evaluating Your Return on Investment
Great advice Jennifer. The home will likely add a great cash-flow that can assist in financing the additional home. Most employers don’t provide any retitement anymore and young home buyers should seriously consider this as a retirement plan.
Keith- I’ve met several young people who are doing just that. Their parents bought a house for them to live in during college that ended up being paid for by roommates. What a great lesson to teach your children. Those young people are now building their real estate portfolios and will be set for life.