This is especially true for first time homeowners who are worried over whether their purchase was a wise investment.
The truth is, if you’re worried about your financial future and fear you may regret buying the property — you may want to consider making your home an investment property.
By leveraging your property to earn rental income, you can ensure that your house pays itself off and help secure your finances.
Here are three reasons why homeowners should take the plunge and rent out their property in 2020.
1. You’ll Earn Money and Save Too
No matter your age, it’s important to plan for the future and save money whenever possible. This can be difficult for homeowners who are tied up in their investment. Renting out your house, however, gives you that extra income to explore other investment opportunities or put it all in the bank!
2. FHA Loans Make First-Time Home-Buying Easier
Many potential first-time homebuyers think they’re unable to afford a house because of the 20% down payment required for any property. However, in many cases, you can make the purchase even if you have less than 20% for the down payment by getting an FHA loan. These loans are intended in part to help those with less-than-perfect credit scores become homeowners; however, the regulations state that you must reside in the property you purchase.
3. Renting Your Home Will Drive the Real Estate Market
The Research Institute for Housing America recently published data claiming that immigrants will drive 36% of real-estate growth over the next two decades. With more people desiring to become homeowners, you can put yourself in a profitable position by becoming a property owner. This way, if increased housing demand makes the value of your neighborhood rise, you’ll be able to benefit.
Do you have questions about renting out your property? We have answers. Give us a call!