Can your first home be an investment property? In this episode, we discuss how your first home is an investment in the future and how it could be more profitable than renting.
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Hi everyone, and welcome to another edition of Homebuyer's School.
Today I'm joined by Eddy D'Ambrosio, real estate agent with Remax Elite.
The question we're going to answer is:
"Should my first home be an investment property?"
Eddy, let's say I'm a first-time home buyer.
Should my home be an actual investment, or something that I can maybe rent out or maybe flip out for later?
[00:00:30] Yeah. I mean, there isn't really a reason to say no to that question.
I mean, if you have an opportunity to invest in real estate, then absolutely, get started. At the same time, I think every home is in itself an investment.
They say that one of the greatest investments that you can make is in real estate.
Karl Yeh: My dad always says that.
Eddy D'Ambrosio: Yeah.
Well, and when you think about it, if you are buying that first home, what you're ... You may be [00:01:00] currently living at home.
You may be renting another property.
Either way, especially if you have a rent payment, that money that you pay towards rent is actually paying someone else's investment.
It's paying down their mortgage.
Karl Yeh: Yep.
Investing in your future
As soon as you invest in real estate, and you have purchased that first home, you're now investing in your future by paying down your mortgage.
You're building equity in that property, and that equity can be used for great things in the future, like maybe stepping up into that next [00:01:30] property.
It can be used for renovating this home that you purchased and improving its property value.
Absolutely, either way, buying your property is an investment.
So, regardless if you live in it, look at it as a rental property, or even looking to flip it later on, it's still great, regardless.
Yeah. You know what?
Absolutely. Home ownership is more profitable than renting.
Just paying down your mortgage in itself is an investment.
But for those that do decide [00:02:00] to purchase a property, their first property, and rent it out, that's great, too.
Now you have someone else paying down your mortgage, and they're paying to build your equity in that property.
So, absolutely, if you can do it, then why not?
Perfect. Thank you very much, Eddy. Thank you very much everyone for joining us, and we'll catch you next time.
Let us know if you have additional home buying questions that we can answer by submitting them in the comments section below.
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About Eddy D'Ambrosio:
My experience in the real estate industry started in 2010 selling homes for one of Edmonton's largest new home builders. With over 150 homes sold, I learned what it takes to sell homes in both a busy and a slow market. In all of my years selling homes I was a top producer and in 2014 I received the A.C Westman Award for both Top Sales and Customer Service Ranking which is the highest honour. The skills I learned working in the New home Industry transfer over to general real estate in a big way and make me a huge asset to have on both the selling side of a transaction and the buyers side.
My message to those looking to sell a home today is that my experience and expertise is in understanding the people I'm selling for and the people I'm selling to, understanding the product or property that I'm working with, and developing a creative and effective strategy that will get us top dollar for your home. I enjoy the unique challenge and opportunity that comes with each individual property and I don't work with a one size fits all approach so contact me when you are ready to meet and work together to put together the best strategy for you and your home.