First-time home buyers have a unique opportunity to cash in on their first property. 

Admittedly, we are a little biased, but we want to talk specifically today to first-time home buyers and explain why buying a multi-family property is by far the best & safest real estate investment you can make. A lot of first-time home buyers think they are making a great investment when they buy a condo or single family. Owning a home shows financial stability, builds equity, and your property is likely to appreciate in value (particularly here in Essex County).

However, if you are really looking at your property as an investment the best and the safest way to build wealth through real estate is to buy a multi-family property.  Below are a few things you should know to help you maximize your investment as a first-time home buyer.

First: You Can Buy with Only 3.5% Down

For first-time home buyers, if you are going to live in the property as your primary residence, the banks will finance up to 96.5% of the purchase price. This includes condos, single families AND multi-family properties (2-4 units).

This means that if you plan to live in the property then you can buy a 2 unit, 3 unit or 4-unit multi-family home with as little as 3.5% down. This is a HUGE opportunity to LEVERAGE the bank’s MONEY TO BUY AN INCOME-PRODUCING ASSET. There is no other investment out there that allows you to buy 100% ownership in something for just 3 1/2% of the value.

Second: Buy a Multifamily Before Any Other Property

One common mistake most people make is they buy a condo or single-family as their FIRST home and THEN look to buy an investment property. This is a HUGE HUGE mistake.

Because what happens when you do that is the bank now considers that to be an “investment property” which they consider is a riskier loan for them to make and now require the buyer to put more money down, usually 25% of the purchase price. So now the bank will only finance 75% of the property.

Third: You Don’t Have to Live in it Forever.

If you plan on buying a multi-family property as an investment at some point, you would be crazy not to buy it as your first property. People often worry that they’ll be stuck in a property that their significant other doesn’t like or that doesn’t fit their lifestyle. That doesn’t have to be the case. Most banks only require you to live in it for 9 months! So, all you need to do is spend the equivalent of a Baseball season in the unit and then you can go buy that condo in the city or that huge single family in the suburbs you want (while making money off the unit you just vacated.)

Fourth: Build Equity from Your Tenants, Not your Savings.

When you have tenants, you have income. You’re making money each month you’re paying down the balance of your mortgage, you’re building equity and you did it all with 3 1/2% down. The Return on Investment is HUGE.

Don’t person 20 years from now who wished they had bought in. Get in now, while the market is good, rates are low and you can still qualify for first-time homebuyer mortgages. To find out if you would qualify for some of the offers we discussed above, please give us a call or shoot us an email.

Want to Know More?

We’ll be holding a free first-time home buyers seminar to help answer all your questions. Space is limited, so please click the link below to register or call our office at 617 212 3251.

Register below for our free seminar.

DATE: Wednesday, September 20, 2017

TIME: 7:00 PM

LOCATION: 40R Merrimac St. Newburyport

TELEPHONE: 617-212-3251

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DISCLAIMER: The data and information on our website are merely our opinions and should not be construed as advice or counsel on financial or legal matters.