Most people wait until they have bought their first or second house for them to start thinking about investing in that land such as in renting or in real estate. Land investment has produced many wealthy people we know in the world today hence there is a lot to gain because land is a sound and solid investment that can bring back a lot of returns when compared to buying the first house.
In this modern world of the mortgage crisis, many young people find themselves wondering whether buying a house is a good or bad investment. One way to answer this question is by investing in land or maybe renting out that first house that you have bought. Turning your house into an investment can provide great returns which can even help you in buying another land or home.
The idea here is ensuring that instead of just having a big home that has no returns financially, making this home an investment will be an added advantage to your own personal life. Sometimes where you want to live is not affordable but somehow you can afford to buy a land or property in another place. Renting this investment property can be a good option as you save up for your dream suburb.
Another issue can be where you want to live is not one of the best investment areas. Being a first-time investor helps you to choose an area with the potential for growth. Purchasing property for investment mostly comes with certain benefits in taxation. Therefore, investing in that land provides you with the ability to claim back all the expenses which include paper costs like depreciation.
This, in turn, will lower your tax the end of the year giving you substantial savings. When you purchase a fairly low priced land that sees a high amount of money or rent, then, your investment can go into positive cash flow territory allowing you to buy more investment property or your dream home. Therefore investing in land rather than buying your first house which you will be living in can assist you greatly yo leverage into your home later.