Owning a home is a major part of the “American Dream”. You hear IT all the time. For many, the purchase of a home is a symbol, for either status or just personal accomplishment that you have, indeed, made it. Sometimes that achievement does not completely jibe with the function of your everyday life. In other words, you have it (or are poised to make that purchase), and it is a good investment, but actual home living isn’t for you. Maybe you’re in a profession where you work long hours or travel and it just doesn’t make sense to have this property that requires so much to maintain that you’re never in or have the time to maintain. Or maybe, you want to be close to loved ones or work/school and renting in that particular area is less cost-prohibitive than purchasing. Whatever the case may be, after weighing the pros and cons, you’re leaning towards buying but not living in a home.
You’re not alone. It’s very common. Many people have discussed home buying with an expert and have been advised or arrived at the conclusion on their own, that real estate is a powerful investment, whether you live in or not. Sure, there’s an argument to be made for the practicality of having a mortgage versus paying rent. A darn good argument! There’s also valid reasoning behind finding the best living situation to fit your life and lifestyle. If renting a small, affordable apartment/condo fits better within your daily life, then, owning a home for residency is counterintuitive. However, that’s no reason, if you’re able to and ready to, not to purchase a home.
If you can’t make up your mind either way, consider purchasing a duplex or a home with an income suite. You live in one and rent out the other (the one that can fetch the most rent, if there is a difference). You can have the best of both worlds. You can get your feet wet with being a landlord before diving in head first. Then, if the convenience of apartment living still beckons, you now have some experience as a landlord and have not one but two sources of income!
How to make it work for you:
- Really consider a duplex and the option of living in it, at first, to slowly learn the business of being a landlord. And, really allow yourself to learn how it IS A BUSINESS!
- Purchase a property that you can afford, even in instances of vacancy.
- Look into government programs that assist with qualified fist-time buyers; that will make it an even more affordable, viable option regardless of the fact that it’s for an investment.
- Talk with an expert, not only in real estate, but purchasing for the specific purpose of property investment to make sure your end goal of creating passive income, is achievable.
The scenario may seem farfetched but it’s done, and done often. While a house in the burbs may not be your cup of tea, it can definitely end up being your bread and butter. So, buy a house for status to others or proof to yourself that all your hard work was not in vain. Heck, buy three! However, don’t feel you have to actually live in it just because you were able to save, and sacrifice to buy it. Prove your continued diligence and dedication to your financial security, and make the decision to turn your achievement into the ultimate demonstration of status…INCOME!
