It’s believed if you want success and growth in the future, the best time to act is now. It’s never too late to begin investing and planning for the future, but the sooner the better. This is true in real estate, as buying a house, an apartment or whatever other type of property you’re looking for can pay off big time if you invest wisely in your 20s.
Owning a house rather than renting is often a good way to save money and set yourself up with a valuable asset in the future. However, renting it out can be even better as it’s a guaranteed source of income that can pay off your mortgage while also earning you some extra money on top.
If you are looking at investing in the Phoenix real estate as a potential investment opportunity- values have gone up 5.5% over the past year and their Phoenix real estate market prediction is that the prices will rise 2.6% by May 2020. Data by Redfin shows that the Phoenix housing market is very competitive. Homes in Phoenix receive 1 offers on average and sell in around 44 days.
Here are three ways in which investors can put properties to good use:
1. Be a Landlord
Becoming a landlord requires not only financial resources but also managerial talent, attention to detail and, often, a healthy portion of sweat equity. There may be months when emergency repairs will eat up the potential profits making this role much more than just collecting rent. On average, 37% of U.S. households live in rentals, according to the National Multifamily Housing Council.
2. Real Estate Investment Group
Investing in real estate can be intimidating. It can be costly to get started, and dealing with the complexity of taxes, rent, and property maintenance can scare away even the bravest investors. Joining an investment group focused on real estate can help ease some of that anxiety and assist you in achieving your financial goals. You can benefit from the wisdom of a group and have a good time along the way, and much of the work of investing in real estate can be spread out, making it easier to enjoy the investment returns without the stress.
House flipping is when real estate investors buy homes, usually at auction, and then resell them at a profit months down the road. Can you make money doing this? Yes. Can you make a lot of money doing this? Yes. But you can also lose everything you own if you make a bad decision.