Most people look at their homes as a cash-consuming necessity. After all, a good chunk of your monthly earnings is probably spent on the mortgage bills. However, there’s another way to look at your home: as a lucrative investment opportunity. Here are several reasons why:

Your Home is the Most Valuable Asset You Own

In life, the home is the most valuable asset the average person can own, unless you go and buy an even bigger and more expensive house. This value adds to your overall wealth. When a home increases your wealth, you will be able to make bigger investments. Be careful here though: it’s not smart to gamble your shelter away in risky deals. Instead, your home can be used to make “safe” investments, where the deal is most likely going to be lucrative.

Real Estate Yields are Expected to Rise in Major Cities

You are a real estate investor, whether you realize it or not, when you own a home. You have, essentially, invested in a property when you bought your home. The good news is, depending on where you live, you might be able resell the property at double the value. The 2008 crash dealt a heavy blow to the housing market. Prices fell overall. But housing prices have been stabilizing and even rising in some places thanks to demand.

The demand for housing on average is only going to rise, not fall. Everyone needs shelter. When you live in a city or close to a city, the price of your house will only go higher. Even in a rural area, property prices can increase due to foreign buyers and industry uses like for mega farms or cell towers. When you own a trust deed for your house, you will have opportunities to cash in from REIT Alternative Investments, among others.

Your Home is a Secured Asset

Your home is an asset you can offer as collateral when obtaining a loan like a second mortgage. So if you spot a good investment opportunity, you can offer your house as collateral, get a bank loan, invest, and double your wealth. Of course, as mentioned before, you should do something like this carefully so you don’t lose your home in a bad deal.

You Can Easily Earn a Secondary Income

The biggest perk of owning a home is that you can always earn a secondary income simply by ownership. If you buy a multi-bedroom house, you can easily rent out a bedroom or the basement to earn some extra cash each month. It will not be big, but the amount you earn will be high enough to cover the bills. Some people convert parts of their homes into office rent space or bed and breakfast motels.

The point is, having a home and land can increase your opportunities to make money. Even if you can’t afford your dream house with your current income, you can buy a smaller house, make a few modifications, and resell it for twice the price than you purchased it. A simple modification like redoing old flooring can skyrocket the value of a house. So, don’t look at your home as a burden. View it as an opportunity to invest.

 

 

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