Do you think homebuyers should see a home as an investment?
Residential real estate, like other markets, has faced its challenges. It has its ups and downs, but even so, it is one of the basic human needs to have a home. If you are thinking of buying a home for the first time or the seventh, it is always good to have the best outlook on it. Is a home an investment? Let’s take a look at this ongoing debate.
How a Home Can Be an Investment
When You Rent It Out
A house can be an investment if you rent it out. If you know how to time the market, manage property and tenants, and charge appropriately, or you are willing to learn the ropes, then becoming a landlord with or without a property manager is a way to make a house earn income for you.
When You Flip and Sell It
Another way to use a home as an investment is to purchase a fixer-upper, renovate it, and put it up for sale at a higher price than what you paid and renovated it for. Even in a challenging economy, it is possible to do this successfully with a quick sale.
When You Own It for a Long Time
If you just intend for the house to be your primary residence, then you may need to own the house for a long time before it will see a significant profit when you sell it. The market has to be right as well; just because a house price has skyrocketed doesn’t mean buyers will think the price is right.
Is a House an Investment?
How Homes Really Perform Financially
Whether you call the house your home or charge someone else to live there, the house will have taxes, insurance, and maintenance costs. Additionally, inflation can muddy its value. You can only see what value your home has really gained or even lost if you account for all of these factors.
The Purpose of a Home
Some argue that you should not see your home as an investment at all, but a purchase. While it is costly, a home’s primary purpose is very personal, not merely financial. With the extra ongoing costs involved in buying a home, renting can be the financially better choice today.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.