Buying an Investment Property in Bryan

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Buying

Investing in real estate is a popular strategy among many Americans who are trying to make more money and grow their wealth. Do you know why? Because property is very valuable and is considered to be a great long-term investment – the one thing that holds people back is that investing in and owning real estate is a big commitment that requires a lot of time and money.

The great American dream tells us that a big part of it falls in homeownership, which means that most people will save up money to have enough for a down payment on their first home. Then they’re likely to sell that first home and take the profit they made and invest it back into a larger home. 

 

If you are looking to buy your first home, but you don’t necessarily love the homes or the neighborhoods that you can currently afford, then you should consider buying an investment property in Bryan, TX instead. Here are some reasons why many first time buyers are investing in real estate instead of taking the traditional route of buying their first home. 

 

Home values are at an all-time high and are consistently increasing year over year. While we don’t know how the COVID pandemic will impact the real estate market and home values long-term, at this point in time the market is still strong in Bryan College Station. 

 


Interest rates are historically low, which means that your monthly payments will also be fairly low. The interest rate that you qualify for largely depends on your credit score, the down payment amount and your debt to income ratio. Most first time buyers will put down between three and five percent, but it is best to put down 20% so you can avoid mortgage insurance, qualify for a lower interest rate and enjoy lower monthly payments. When it comes to credit score, banks want strong borrowers with a score above 740. If you are having a hard time qualifying for a low interest rate due to a small down payment, lower credit score or other issues then you should consider working with a smaller bank that may have more flexibility in lending than a big national bank. 

 


One of the main reasons why buyers wait to pull the trigger on buying a home is that the home they want or the neighborhood they are interested in is not affordable. With home values on the rise many first-time buyers find it impossible to purchase a home they like in an area they like so they end up settling for a smaller home or a less than desirable area. If you find yourself in this scenario you should consider buying an investment property in Bryan that you can rent out. This allows you to get your foot in the real estate door, generate monthly cash flow and build equity until you can afford to buy the home of your dreams in the neighborhood that you like. 


Owning real estate that you operate as a rental offers many tax benefits and write offs that can help you save money long term.

 


When you operate a home as a rental property you can charge rent that is higher than your mortgage, which helps you cover your monthly expenses as well as getting extra cash flow that you can set aside for the down payment on your dream home.

 


Another reason why buyers choose to invest in property is because they want or need flexibility in their lifestyle. Owning a home can limit your ability to relocate if you need to, which might not be a good fit for your current lifestyle. Buying an investment property in Bryan, TX gives you the freedom to move if you want to, but you won’t miss out on growing your real estate portfolio and equity.