Should You Buy A Property To Live In Or As An Investment?
In recent years property investment has been considered to be the most successful and excellent form of investment ensuring huge capital gains. However like other form of investment, property investments are also subjected to market fluctuations. This has left the investors anticipating if buying a house for living is still a good investment. Before considering investment home buyers should carefully examine some basic home ownership fundamentals. It is of foremost importance to save the equity in your residential home. The equity should never be used to pay for education, holidays, credit card debt and other form of luxuries. At the same time it is also not advisable to spend your entire retirement savings to purchase a residence. Your residential property will surely provide you capital gains in terms of appreciation but only after a period of time.
Nevertheless it is always worth to buy a home if it is affordable. With ownership comes a sense of security and safety. You are free to choose the locality you want to live in when buying a property to live in. You are free to stay in the house as long as you want to live in. In addition to that there are several tax benefits with home ownership. When buying a home you need to pay a fixed mortgage rate over time unlike monthly rentals that might increase with time. The bottom line is that when buying a house to live in remodel and renovate it according to your lifestyle and taste. This way buying a house for living in can also be considered as a form of business investment since it provides a rent free form of accommodation and also benefit you whenever you plan to sell it.
However buying property purely as a form of investment provides a substantial higher return on investment over time. The thumb rule when buying for investment is to buy property in an area where other people would like to acquire. Try to get the best deal for yourself. Unlike any other form of business property investment does not require a huge principal to get started. In addition to that you can save a lot on taxes by claiming deductions. Properties generate income for several years to come.
If you have been searching for your dream home for a long time and are unable to acquire one, then it’s time you need to shift all your energies and focus on buying property as a form of investment. With this change in your approach it will be fairly easier for you to locate a property and chances are you might end up spending less too. It is important to hunt for houses that are featured as per the requirements of perspective buyers. Look for property where demand from buyers has surpassed the supply for a relatively longer period, yielding a strong capital growth prospective. Get hold of the probable locations through auction houses. In addition minimize holding costs by implementing tax breaks. The return on property investment is bound to compound when acquired on long-term basis varying from a minimum period of five years up to 15 years. This approach presents you with several advantages that homeowners do not benefit.
Jason Sands is an experienced property investor and over the years he has gained good insight and valuable information on the property market. Some great recommendations for investing are Mid North Coast properties and Port Stephens real estate in Australia. More information visit — http://www.limekilnspoint.com.au
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