How You Can Build Wealth Through Real Estate
In 2018, according to the National Association of REALTORS®, single women made up 10 percent of all first-time homebuyers – only two percent of all first-time homebuyers were single men. With this trend continuing into 2019, below are a few tips for anyone looking to build their wealth through real estate.
Savings Up, Debt Down…And Stop Spending
To begin building wealth through real estate, you must acquire your first property. To do this in a financially successful way, whether the property is a primary residence or an investment property, you need to have some things in place first.
- Build savings: Lenders will want to see that you have some cash in savings before buying.
- Lower credit card balance: Keep your utilization rate 20 percent below the card limit. This will help you qualify for a better mortgage rate.
- Pay down other debts: The less you owe on student loans, car loans and the like, the higher their FICO score will be and the lower their debt to income will be.
- Stop buying “wants”: Focus on what is “absolutely essential” and avoid the more frivolous purchases in the months leading into a real estate purchase.
The biggest mistake millennials make is avoiding buying their first home altogether. If you want to build real financial security, real wealth for your lifetime, then you should get in the real estate game. In fact, according to best-selling personal finance author David Bach, homeowners are worth 40 times more than renters. So, get out there and buy – and be responsible about it.
All in all, the home buying process can be overwhelming. Using these principles as a baseline, you can make smart investment choices that result in increased wealth.
I am here to empower you on this real estate journey. If you are in the search of your first property, American Pride Real Estate is here to assist. Don’t hesitate to reach out!