Women are currently dominating the homebuying industry, with 77% of the population seeking available properties, while only 63% of men aim for the same goal. Despite these numbers, men are more likely to purchase a property for investment compared to women. No wonder a lot of men are willing to purchase huge homes, even luxury ones. They believe that they will gain long-term benefits from investing in these huge residential properties.
This trend may prove to be beneficial to people, especially to men under their 30s. Most of them are becoming more ambitious, especially when building their dreams. This includes the goals of purchasing residential properties. However, if you are more of a practical person, you need to try your best to disregard this trend for a bit. You need to weigh the pros and cons of investing in real estate first. This is especially crucial if it’s your first time buying a home.
Investing in Real Estate: Is it Worth It?
You need to understand that investing in real estate, especially in residential properties, requires a significant amount of money. Thus, if you only have a limited budget to buy one, you need to be extra careful when choosing a property. First, you need to determine your main purpose in buying one. Do you plan to purchase a home and sell it in the future? How about converting it into a rental property business? If you answer yes to these questions, purchasing a residential property may be an excellent move. Here are some benefits of owning a residential property.
- Enjoy long-term financial benefits—Every year, the value of residential properties significantly depreciates. However, this doesn’t mean that you can’t get long-term benefits from it. Remember that you can take advantage of the increasing price of the land on which your property sits. Thus, you can still sell the entire property at a higher price when the right time comes.
- Experience privacy and freedom—Owning a residential property also provide you privacy benefits. Also, unlike renting an apartment, you are free to decorate, renovate, or remodel your residential property as often as you want. Aside from this, you no longer have to worry about people hearing your secrets or any important information about your personal life.
- Improve your financial health—Purchasing a home also allows you to improve your budgeting skills. With this, you will be able to divide your income properly. You can also take advantage of fixed mortgage prices so that you don’t have to keep worrying about increasing rental fees.
Essential Considerations in Purchasing Your First Home
Finding the perfect home is quite challenging, especially now that there are many available properties in the market. You may be enticed with the aesthetically-appealing display homes, and you may also be encouraged to make a purchase because of affordable housing prices. However, you need to ensure that you consider the following first before choosing a particular property to purchase:
- Location—Whether you are purchasing a forever home or a temporary one, you need to note the property’s location. The residential property must be ideally located near business establishments, schools, hospitals, and transportation services. This is extremely important, especially if you plan to sell your home or convert it into a rental property in the future. Remember that buyers and renters would always want a home that is accessible and easy to find.
- Lot size—Don’t forget to consider the lot size, so you can check if you have additional space to build extra rooms or build an outdoor area. You need to ensure that your lot area is spacious enough so you can perform expansion anytime you want.
- Total price—Make sure that you can afford the total price of the residential property. Of course, you have the option to get a monthly mortgage for the house payment, and it will seem affordable at first. However, you need to check the total price of the property so you can compare it to other houses available in the market. Find out if the property is fairly priced when compared with other houses with similar size and features.
Buying your first home poses a lot of risks for your financial health. However, you can also take advantage of income-generating benefits that you can get from purchasing residential properties. The key is to keep educating yourself about the best practices in investing in real estate. Study the market and the industry, so you will learn more about effective strategies in turning your home into an asset. Don’t forget to work with expert real estate agents and financial advisers whenever necessary. These experts can assist you in finding the right home that will fit your budget and preferences.