BUILDING YOUR FINANCIAL FUTURE THROUGH REAL ESTATE

BUILDING YOUR FINANCIAL FUTURE THROUGH REAL ESTATE by: Nickie Butcher

For many young adults, the idea of homeownership and building wealth seems scary and unattainable. Prices for almost all goods keep rising and the economic uncertainty in the world is becoming more prevalent, it’s no wonder why young adults feel this way but something needs to change. There will always be opportunities to build a better future for yourself, you just need to get educated. Owning real estate is one of the best investments you can make.

Real estate is a great source to build your future and become financially free. Did you know the average homeowner is about 40 times more wealthy than the average renter? When you rent, you are paying someone else’s mortgage down when you could be contributing that to your own wealth.

Some real estate purchases can even have you living for free, or at least give you a huge discount on your monthly mortgage payment. Sounds like a dream, but it’s not, it’s called House Hacking. House Hacking is where you can buy a multi-family property, a duplex for example, which is 2 units, you live on one side and rent out the other unit. This strategy will typically cover most, if not all of your mortgage, and the more units the better! House Hacking is a great strategy for firsttime home buyers because you can do this with as little as 3.5% down, you are starting your homeownership journey, and you are learning about real estate investing by renting

out a unit and building wealth through passive income. This is just one of the many strategies for real estate investing.

Not everyone should buy a home, but if you can and have the desire to, why not? Things to consider when buying a house: can you afford it and are you comfortable with the decision? That is something only you can answer. How long will you be in that area?

If you only plan on being in that area for a few years you may want to reconsider, unless you want to build your real estate portfolio, then you can keep that as a rental. Can you maintain the house? There will be upkeep costs throughout the years.

One of the main concerns for young adults is the commitment to buying a house, some people see a 30-year mortgage and it terrifies them, but most homeowners only stay in their home for 7-10 years on average. Plus, as I mentioned earlier, if you do have the desire to own real estate then you can make that property a rental.

The main concern currently everyone has is the rising prices of real estate, they are waiting for the market to “crash”. Keep in mind Columbus has many large corporations coming to the city which will bring many workers who will need housing, therefore driving up demand and prices. It all comes down to can you afford it and are you comfortable with the decision. That is the most important factor.

Nickie Butcher