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How Do You Make Money By Purchasing A Home?



One of the most common questions we get from first time home buyers is how they can make money when purchasing a home. While there are many ways to make money in real estate, we typically recommend one of four methods: amortization, mortgage reduction, house hacking, or appreciation.


Amortization refers to the process of paying off a loan over time. Every month, a portion of your payment goes towards reducing the principal balance of the loan. This method is often used by investors who purchase rental properties and hold them for the long term.


Mortgage reduction is another way to make money when buying a home. By making larger payments each month, you can reduce the amount of interest you pay over the life of the loan. This will save you money in the long run and help you build equity in your home more quickly.


House hacking is a strategy that allows you to live for free (or close to it) by renting out part of your home. By leasing out a spare bedroom, basement apartment, or even just a room in your house, you can offset some or all of your living expenses. This is an ideal strategy for first time home buyers who are looking to save money.


Appreciation is the increase in value of an asset over time. For real estate, this typically occurs as the result of inflation, market trends, or improvements made to the property. If you purchase a home in an area that is growing rapidly, you may see a significant appreciation in the value of your home over time.


While there are many ways to make money when purchasing a home, these are four of the most common and effective methods. By utilizing one or more of these strategies, you can make money while also building equity in your home. Talk to your Mortgage Advisor about which strategy may be right for you.




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