The Best Property for First-Time Home Buyers
Are you ready to invest in your first property? Congratulations! That’s a big step.
Once you have learned how to invest in real estate with no money down- and secured investors- the possibilities are endless.
But now you’re left with the question: Which type of property should I buy?
There are many different avenues that real estate investors can take. You can purchase an apartment, a house, an apartment complex, a commercial building- the possibilities are endless.
In fact, as you continue to build your real estate investment portfolio, you will likely add several types of properties to diversify your investments.
But you need to start somewhere.
Most first-time investors- particularly millennials- choose to purchase an apartment. And for good reason!
Stats show that investing in a one-bedroom apartment in South Africa can yield the highest ROI for first-time buyers- upwards of 17% compared to 15% for a two-bedroom.
Purchasing an apartment is a great place to start because it is a small property that can help provide a steady rental income stream that will go on to fund your future investments.
Here are some benefits to investing in an apartment:
Dependable income: Everyone has to live somewhere, right? When you purchase an apartment, there will always be someone looking to rent- usually a long list of people. Since apartments are so easy to rent out, you will be rewarded with a dependable income stream every month from that property.
Increased ROI: Over time, apartments consistently appreciate in value. Unlike other types of investments, purchasing an apartment as a rental property will ensure that you don’t lose money over the years.
Easy to manage: As you grow your, you will be able to manage multiple properties easily. However, it’s best to smart small and gain experience rather than overwhelm yourself by making your first investment a large property or entire apartment complex
In short, investing in an apartment as a first-time buyer is a fantastic way to start your investment portfolio, gain a steady income stream and make a high ROI.
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