Want to Invest in Something Solid Over the Long Haul? Buy a Home.
Although there may be negatives to both renting and buying, by-in-large, homeownership is a solid wealth builder over time. This article will focus on the overwhelming benefits of buying a home and how it will build value and wealth over a period of time…Often beating other investments.
Beat Inflation Over Time
Buying a home will be more expensive in the short term. Yet, it is proven that a purchase will provide you much more financial flexibility and leverage over time – Outpacing Inflation. When I talk to potential home buyers in my city of Long Beach, the word “Inflation” almost never enters the conversation. It’s a bad word, yet when asked, I point out the positive side of inflation with how your home purchase investment will grow over the years. Consider this, putting dollars into rent will mean that money will have been spent for a service rendered with no chance of ever being recovered. Invest in a home and the future gains made by the purchase, especially here in Long Beach, CA will beat inflation and put money in your pocket.
Increase Your Home’s Value With Upgrades/Updates
There’s little or no advantage to doing anything to a property you rent. After all, any investment you make will be transferred to the owner once you leave. At the same time, if it is renovation that the owner doesn’t agree with, they may charge you to “undo” it. The bottom line is that any perceived upgrades to rental property gains nothing to you. However, updates to a home you own will have the opposite effect! For inconvenience and initial investment, a renovation to a Kitchen, bathroom or layout of your home can position it for future sale at a much higher value than without it. It is your investment that
Property that You Own Can Be Rented
Besides the obvious benefits of owning investment property. You can also take advantage of renting out your own home if you travel extensively or are away for any extended period of time. This is something that renting has little chance of doing. The advent and success of such services as Airbnb and other recent housing opportunities that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Homeownership is a Solid Wealth Builder
Purchasing a home is an investment of time and money. It can require coordination with a number of people including your accountant where renting doesn’t. But the financial benefits homeownership (down the road) can be much more significant than any other investment you can make.
So, if you’re considering purchasing a home, give me a call at (562)618-9770.
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