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.