One of the toughest decisions you have to make when you come into money is where to put it.
The choices are huge, and the advice varies for each one. It’s a dream for most to pump their money into something that will eventually help them to earn big money throughout their later years, but which is the right way to go? Is there even only one option for you or could you invest in more than one option?
Everyone dreams of the day they have a family and a house with a beautiful white picket fence and wraparound porch. Moving the family in somewhere secure means that real estate bought with TJLamb.com is a very real investment dream for a lot of people.
Many people buy a home as they believe it’s something that they “should” do, rather than something that they want. It’s very important to be able to debunk some of the biggest real estate investment myths so that you don’t rush into a decision you believe is the right one in the name of the future. So, here are the four biggest myths around and their truths.
It’s a great investment
OK, so we all know that buying a property and renting it out is a good, tangible asset where you can watch your money either grow in value or sink over time. We hear stories about the house that was bought in an up and coming neighbourhood for a small amount and is now worth millions of dollars.
But how likely is that to happen for you? When you bought your investment property, did you ever account for inflation? Probably not. You need to think ahead before you invest your cash so that you can tell if it really WILL be a good investment or not.
Money is thrown away on rent
If you’re spending a considerable amount of money per month on rent, you’re probably thinking you could get better for your money if you purchase a home. The rent that you pay is likely going to be in keeping with the state of the property you are paying for.
Buying a house often means upgrading to something better, so it makes sense that your mortgage could be more expensive than the rent that you are paying. Think about that before you push your money into a purchase that won’t necessarily be a cheaper option.
I can sell one day
Can you though? Can you really guarantee that by the time you become desperate to sell the property that the market is going to be favourable for that sale? You can’t.
I could buy more than one house and build an empire
Deciding to be a property developer is a nice idea, but one that may not be worth it for you, especially if you have no idea on the right time to buy a home or what that would look like for you.
Overall, property is an investment to consider, but it will take some serious research on your part before you should sink your money into any kind of investment.