First and foremost, we want to assure you that, within our team, we practice what we preach. Each member of James Bellile and Associates who works with any buyers has owned multiple properties of their own in the past. Many of us have remodeled multiple properties as well.
Although all real estate could be classified as investments and I have written vacation homes in the same sublink paragraph as investment properties, your goals for each may be substantially different depending on what your needs are. Below I will outline the ways a real estate investment can make you money and, if you are buying a vacation property, you may want to scale down your exact wants for a more economical return on your ‘investment’.
1. Buying a property below market value
2. Holding property and having it appreciate
3. Holding property and writing off taxes and other expenses
4. Holding property and charging rental income
5. Holding property and cashing out equity in order to wrap into higher returning investments
6. Selling property for greater than market value
All six of these money making steps are impacted by what type of real estate you choose to purchase, who is the purchasers, when it is purchased, where it is purchased, and, finally, how it is purchased.
Currently, using today’s financing, both investment properties and vacation homes require a typical minimum 20% down payment, sometime higher, very, very rarely less (programs come and go often).