Investment vs Single Family Homes – Which Should I Buy?
When it comes to buying a property, there are pros and cons to each situation. Maybe you’re deciding on a single-family house to get for your new wife and baby on the way. On the other side, an investment home may just be something good for the future. Here are some reasons why you should get an investment home or a single-family home.
Single Family Home
Typically single-family home real estate is in a good location and tends to appreciate much quicker than if you were to rent out an apartment or condo. However, the taxes may be higher in this case, which could certainly put a damper on your pocket if you’re not careful.
This is one of the key reasons why people purchase a single-family home. There’s enough yard space to host a family gathering in their backyard. Not to mention, they can build their kids a playground area, which is fun for the little ones.
People also tend to create a garden where they’re able to grow fresh fruits and vegetables throughout the year. As a result, the kids will be less likely to damage the inside of the house.
A single-family home keeps it simple with one furnace, one laundry room, and most likely two toilets. When you have so many appliances and dwellings, it’s harder to keep track of things. If you rent a single-family home to people, it’s more likely
It’s a great way to retire, but there are things you should always be aware of before making the purchase.
Location is also key here because you want to find the right area. You never want to be in a situation where you have to choose a fixer-upper that won’t generate you better profits. Always pick a home in a competitive place where you can get a good price but the demand to live there is high enough for profitability.
You typically need to pay a higher downpayment for an investment property, but the plus side is the payoff may be better for the short-term sale. Whereas a single home is something you plan on having for at least 5-10 years.
If your investment property is a condo, there may be a pool or other things available that aren’t included in a stand-alone house.
Whether you decide on an investment property or a single-family home, it’s important to do your research to see if they meet your goals for the short term or the long haul.