Young people looking to move from their parent’s home should consider the purchase of an investment property, such as a duplex or two-family flat. Most people wait until they are older and have a fair amount of assets before they invest in real estate, but it can be argued that the sooner you begin the better off you will be financially in the long term.
So you just landed your first job and it is time to move out of the basement of your parent’s home. Your first thought is getting an apartment or maybe buying a small house. Your credit is not great, your lifestyle is less than perfect and you’re not the most responsible person in the world. Your parents are telling you that they graduated from college, got a job, rented a small apartment, rented another apartment a bit larger, got married, bought their first starter home, had children, bought a second home, and began to accumulate investments.
But you are not your parents. You are 23 years old with a very good job and have a bit of confidence in yourself. You can do this. First, go see your local mortgage broker and inquire about an FHA loan which requires a small down payment. Second, go visit your local real estate broker and inquire about investment property for sale in an area that you want to live (remember, location is still very important with any purchase of real estate). Third, make it happen.
But why is buying investment property a good idea? Most importantly, you will have another source of income helping you cover the cost of your new investment. In addition, you are building credit as you make each loan payment. Lastly, you are building equity which will lead you to use that for additional purchases of investment property.