If there is one thing we can say about ourselves over the last two or three years is that we have become innovative as a community. Covid, economic turmoil and plenty of other challenges have made the last two or three years some of the most chaotic in recent memory. The housing market seems to be one of the few things immune to the ups and downs of a global economy. Many believe the reason for this is because of the stability owning a home brings, especially during economic turmoil.
When you consider the fluctuation in rent costs, the cost of living, fuel and the instability of income, it’s nice to know that your mortgage payment, which usually is far cheaper than a rent check, is also working as an investment in your own property. It’s an interesting thing to think of a mortgage payment as an investment but in reality that’s exactly what it is. You are investing your time, energy and money into making sure that you have as nice a property as possible.
The motivation for this might be just to have a nice and clean home, it may be financial or something else. The interesting thing is that we sometimes forget the fact that even though we are not considered big players in the real estate market, we are actually doing quite well with our investments. If your home is valued higher now than what you bought it at, isn’t that a good investment? So, what are some other ways you can improve your investment, especially when it comes to getting a return?
Your home has a unique ability to generate income on its own, in several ways. You can open a small business from it, rent out a room, rent parking if you are close to a place in need of it and more. There are so many options that homeowners are taking advantage of in hopes of generating more income to cover their cost of living or even pay off their mortgage faster. Learning how to invest in your own property is the trick and for that you need to work with a realtor.
A realtor is a great partner to have because they can take a look at things from both the real estate perspective and the financial perspective. Your realtor can help you to understand that based on your income and the money you have saved up, minus what your average monthly expenses are and how much you owe on your house, what your options would be as far as renting out a part of your house or even buying another property and trying to rent it out to cover the mortgage. With enough income and enough money down, you can buy a secondary property which would actually work as an investment property, but would have affordable insurance because you can use an umbrella policy that covers your own home. Your property will give you financial options you have never considered.
This is why the smartest place to begin is by working with an experienced realtor. Their understanding of the markets, what you are looking for and what your options are going to be are key in making a decision such as whether or not to sell your home? You may not have considered selling your home, but by working with a realtor they might be able to point out that based on your income you can get an adjustable rate mortgage and move into a much nicer house than you thought and instead of selling your old home, renting it out for the time being. Would this work better for you? That’s what a realtor can help you determine.