When you’re buying a home for the first time, the list of things to consider can seem endless and daunting.
Buying a home early in life allows you to have a home that becomes an investment. The earlier you start buying, the more profit you’ll make. This can allow you to make a full-time, passive income after your properties are paid off with the rent paid by tenants.
However, getting started can be intimidating. From standard homes to condos, it can be tough to decide what type of property to invest in.
Here are a few things you must consider when you purchase your first property.
Look for properties that offer easy access to stores, schools, and workplaces. Location is one of the biggest things people will consider when they look for a place to rent or buy.
Before you purchase a property, check out data on the school district and crime rates in the area. You may not be able to recoup your investment if you purchase in a high-crime area no matter how stunning the home is.
Outdated appliances cost a fortune to replace. Before purchasing a property, take note of the condition of the appliances.
If you plan to rent or flip the house, you will need to calculate how much you’ll need to spend in replacement costs.
Not all appliances may be included, so you may have to buy new ones after purchasing the home.
3. The Seller
If you find a property you love, you may be able to get a great deal if the seller is motivated to get rid of the property.
A seller who is relocating or trying to shed their second mortgage is highly motivated to offload the property, so you can negotiate a lower price.
It’s important to consider the seller’s motivation when buying a home so you don’t pay more than you have to. Look for properties with negotiable prices so you can save money or make a bigger profit.
Should I Buy a Tiny Home?
Although most tiny homes fall well below the median home price, they often cost more per square foot.
Tiny homes appeal to a very small market, so you may have trouble selling the home in the future. Tiny homes are notorious for having unexpected costs and they are considered a risky investment.
Should I Buy a Condo?
Condos are rarely a worthy investment because of all the fees. If you are trying to build a real estate portfolio, standard homes are a safer investment.
Between poor management and overpriced services and amenities, owners have very little sway in the success of the condo. Your money would be better spent buying a property you have full control over.