If you leave too much cash sitting in the bank, it will be destroyed by inflation. Look at how much it’s skyrocketed over the last few months. You should invest in real estate if you want a safe place to put your money.
I bet you won’t go anywhere near cryptocurrencies right now, plus the stock market is crashing before our eyes. What else can you invest in? Let’s discuss why investing in second and third homes is smart.
1. Increase Your Monthly Income
If your credit score is below average can you afford a mortgage? Sure, but it doesn’t always mean you can afford a good life. Once you reach the point where you can afford more homes, it’s time to start enjoying yourself.
The income from an extra home means you’ll be able to afford foreign holidays. You won’t need to worry about going to popular restaurants on weekends. You’ll have a lot more flexibility when it’s time to spend your money.
2. Inviting Your Parents To Stay
Your parents might not be able to live on their own when they’re older. Even though they’ll find it difficult to live by themselves, you don’t need to throw them into a home. Invite your parents to live close to you.
If you have a second home on the same street, they won’t even need to live in your granny flat. You can visit them multiple times during the day to offer help. It’s also great if they want to spend time with their grandkids.
3. Real Estate Is Pretty Stable
If you know all about a second mortgage and how to get it, you’ll be able to invest in your future. Real estate is a pretty safe investment compared to other things. A few big cryptocurrencies have sunk to zero.
It’s risky putting money in technology stocks too, but real estate doesn’t seem like it’s going to fall. If you’re prepared to wait a while before cashing out, it’s extremely unlikely you’ll lose money.
4. Saving For Your Retirement
Second and third homes feel like a burden while you’re young. Even though renters will likely be paying the mortgage, you’ll still need to look after your homes. Everyone will call the landlord when something is wrong.
The real benefits of owning extra homes come when you retire. The mortgages will be paid off by the time you leave work, so you can keep all the cash when you sell your properties, which means you’ll have a wonderful retirement.
5. Help Ease Burden On Your Kids
Young adults are finding it very difficult to buy homes. It doesn’t feel like things will improve in the future. If you earn a big enough income, it’s worth investing in a home for your children in case they can’t afford one.
If the house is close to yours, you’ll be able to see them all the time. You don’t need to hand your second home over, but you could give them a good discount on their rent. You’ll still have a great asset when you’re old.
It’s A Wonderful Investment
You won’t find a better investment than real estate. It might not give you the greatest return on investment, but it’s a very safe way to invest compared to other things.