Question : Purchase a more expensive house or invest in real estate property?
I have extra funds that I would like to utilize in the manner of - buying a bigger house or purchasing real estate property that I would rent out to tenants. Each option has it's benefits and drawbacks.Which would you choose and why? Thanks in advance for all those who respond!
- asked by Mike
All Answers:
Answer #1
I think having mutiple houses and renting them outwould be a more intelligent idea as the tennantswould pay off the mortgage for you over the first30 years and then you would have an income fromthem after the mortgage is all paid off and youare older and retired. Also, house values are solow that all they can do is go up eventually.Alarger house for you now may be nice butfinancially and in the long run it is not going tohelp you the way investing in multiple houseswould. Also, keep in mind that it is TOTALLY abuyer's market. If you were to sell your house tobuy a larger one, you would lose much of the valueof it that you could have gotten by waiting. Nowis the time to buy.
- answered by Joe Dragon
Answer #2
That depends on whether you want to be a landlordor not. Rental properties are great if you holdthem, and can afford the maintenance on them, ANDcan cashflow. Be prepared to replace the carpetwith just about every tenant though, and to getcalls about every little thing that goes wrongwith the place. Here in Charlotte there are somegreat properties that bring in massive amounts ofrent. It's all in where you invest.
- answered by Shawna Marie
Answer #3
First of all buying a bigger house is emotionallybeneficial and rewarding but purchasing realestate and renting it out to tenants would befinancially beneficial and also rewarding. Justask yourself what kind of rewards and benefits areyou really looking for?
- answered by JAIME!
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measure and fulfill your financial needs
