Many homeowners who purchased or refinanced in the last couple of years are currently in a great financial position \u2013 namely due to their low mortgage interest rate (and payment). But what happens if you\u2019re one of the many that wants to upgrade in the current market? Or maybe you\u2019ve just experienced a change in life that requires a new home? If the current interest rates & home prices have you hesitant to make the jump, consider the fact that this may be the best time EVER to become a landlord \/ investor, in order to help offset the carrying costs of your new property, and build long-term wealth.<\/p>\n
Benefits to this approach:<\/strong><\/p>\n If you look at historical real estate appreciation rates, homes typically appreciate by 3-4% per year, on average. This means that a house that is worth $300K in today\u2019s market, may reasonably be worth $9 – $12K more each year. If you retained the home for a 20-year period, historical averages would tell you that the house could reasonably be worth $480 – $540K by 2042.<\/p>\n It’s no secret that if you purchased or refinanced in 2020 or 2021 you most likely have a record low interest rate \u2013 meaning your monthly expenses to own that property are likely as low as they\u2019ll ever get. This sets you up perfectly to take the jump into being a landlord \/ investor in the current market of high rents. The additional passive income could be used to offset the cost of the new house, or to help bolster your nest egg each month. To add to the benefit, remember that a portion of each payment is going to principal reduction on your mortgage, creating another layer of savings through building your equity position.<\/p>\n On the tax end, if you are looking for a way to reduce your adjusted gross income, this could be the ticket. Keeping more of what you make is a huge benefit for obvious reasons. As with anything tax-related, we suggest you speak to your tax pro on how this would specifically affect your tax position.<\/p>\n Final mention<\/strong> \u2013 if the idea of \u201cplaying landlord\u201d doesn\u2019t excite you, there are plenty of property management companies that will help to assist with the day-to-day operations of your investment property (for a percentage of rents received).<\/p>\n As with anything, if you have questions, a conversation to discuss your short and long-term financial objectives is the best starting point.<\/p>\n You know where to reach us \ud83d\ude0a<\/p>\n","protected":false},"excerpt":{"rendered":" Many homeowners who purchased or refinanced in the last couple of years are currently in a great financial position \u2013 namely due to their low mortgage interest rate (and payment). But what happens if you\u2019re one of the many that wants to upgrade in the current market? Or maybe you\u2019ve just experienced a change in […]<\/p>\n","protected":false},"author":26,"featured_media":341,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\n\n