Home Buying 101

You’ve likely heard it said that buying a home is an investment.

But when you consider an investment, def: the action or process of investing money for profit or material result, you may realize that few homes provide a significant return to the owner.

Instead, more commonly a home serves as a black hole for resources without seeing a return greater than what was invested.

Consider your childhood home. You parents paid to keeping it in good shape and likely only saw significant ROI if/when the house was sold.

So, how can you leverage your home as a substantial source of income?
Rent out a room
Buy a duplex

Recently, I went to a home buying webinar and learned a few more things about home buying.

  • If possible pay a low % down. Why? Because it gives you leverage with your existing resources.
  • Pay for mortgage insurance as a one time fee.
  • Don’t pay origination fees.
  • Be thorough in your inspections of the home before you buy, e.g. standard, radon, meth, mold, and sewer inspection.
  • They recommend a 30 year loan because you can always pay more if you need to, you avoid the balloon payment, principle interest is fixed while the property tax & home owner insurance will fluctuate.

If you buy a home, consider how you could leverage it as a significant profitable investment.

Photo by Jesse Roberts on Unsplash.

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