Don’t Make this Mistake When Purchasing a Home

Posted by Ali Rennoll on Sep 3, 2019 9:00:00 AM

Dont Make this Mistake When Purchasing a Home

The median price for the 119,000 single-family homes that contractors started building in 2018 was $281,000 according to the United States Census Bureau. The National Association of Home Builders puts it at $289,000, which is about $350 per square foot. The price can go up depending on whether you want to add a patio or porch, the number of floors, the type of windows and doors, and so on. However, once you build a single-family home in a high demand area, you won’t have to worry about monthly loan deductions because the property will pay for itself, especially if you choose to use it as a long-term rental.

Do not make the mistake of buying a home and then sitting for months waiting for the price to go up. You need to know that home ownership in a recent year fell to 63% from 70%, and only 30% of millennials own homes, while the rest are waiting longer to buy, according to a report by CNBC. The need for more rentals on the market is tremendous.

Additionally, people who prefer to wait for property prices to go up, can find themselves facing bankruptcy when the property markets experience a collapse, or when there is too much volatility in the markets. Defaulting on your loans may lead to you having to file for bankruptcy to protect your home and other personal assets. In the case of property, the creditors only have to take back the property you assigned as collateral when you file for bankruptcy. 

With a single-family rental property, you can play the long game against market uncertainty. This is a winning game because you get to make money, pay down your loan, and the value of the property continues going up. There will be expenses because AC systems do break down, plumbing can start leaking, etc. So, make sure there is positive cash flow every month, and keep six months of expenses in reserve for your property. 

You should not fear the unpredictability of the markets. Consider the Visio Rental360 Loan Program, so that you can invest in a property that brings in money and pays for itself.

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Related: What are you and your money waiting for?, Want to sell your property? Rent it out instead.

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