There’s a reason why they call it real estate: it’s a real, tangible investment. The fact is, land is a finite resource and we’re not manufacturing any new land on Earth. The principle of supply versus demand applies here. Less supply and more demand means that your investment is going to increase in value over time.
#1 Save for your down payment and pretend like that money doesn’t exist. Did you know you can invest in owner occupied real estate for as low as 3% down?
#2 Start small. Your first investment property doesn’t also need to be your dream house.
#3 Plan to own your house for at least 5 years. My personal strategy is to buy and hold. Know your goals and then develop a step by step guide.
#4 Study your market and understand what a good investment looks like when you see it. You may need to put a little sweat equity into improving your property over time. You got this.
#5 Continue to save after you move in. It’s just like owning a car, your house will need preventative maintenance, or perhaps occasional repairs. I suggest developing a spreadsheet to keep track of your major systems.
#6 Make an extra payment towards your principal each year. Did you know that by making one extra payment each year over the life of the loan, you can subtract six years off your 30 year mortgage. Two extra payments and you may be looking at a 15 year payoff!