Yahoo Finance 3 Types of Homes To Buy During Summer 2024 To Get Rich
According to CEIC Data, real estate is a long-term investment that appreciates at an average annual rate of 5.5% per year. While stocks grow faster over the long term, real estate is less volatile, it provides unique tax benefits, and most importantly, you can live in a home while its value grows.
A home purchase won’t make you rich overnight, but the right home can start creating wealth for you this summer.
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Homes in Smaller Cities
Newly remote workers fled big cities like New York and San Francisco during the pandemic, but a 2023 ResumeBuilder.com survey of corporate decision-makers found that 90% of companies with office space will have returned to the office by the end of 2024. That means more onsite and hybrid workers who’ll need to live within commuting distance of their employers.
According to Monster’s 2024 Work Watch Report, 95% of workers are looking for or planning to look for a new job this year. Buying a home in a city with great job prospects could pay off with faster appreciation driven by high demand for homes.
A study published earlier this year by WalletHub identified the following as the five best cities for finding a job:
Scottsdale, Arizona
Tampa, Florida
Salt Lake City, Utah
Columbia, Maryland
Austin, Texas
Dig Deeper: 5 Types of Homes That Will Plummet in Value in 2024
Duplexes
“House hacking”, which is renting out part of your primary residence, was all the rage a few years ago. While there’s nothing new about having tenants pay your mortgage, for most homeowners, a duplex that keeps your living quarters separate is a better option than parceling out bedrooms or basement space.
As long as you live in one half of the duplex, you can finance the purchase with as little as 5% down using a conventional loan. Compared to multifamily properties with more units, a duplex is less expensive and easier to manage — reasonable trade-offs if you want to generate income from your home but aren’t looking to become a full-time property manager.
Fannie Mae or Freddie Mac Foreclosures
When a homeowner defaults on a home loan owned by Fannie Mae or Freddie Mac, the home is sold on the open market. Not all foreclosures are Fannie Mae or Freddie Mac properties, but those that are have special benefits that could help you grow equity faster. For one, they’re often in better shape than other foreclosures, so you’ll spend less money on repairs and updates. In addition, they sometimes sell for less than market value, which gives you extra equity from day one.
Despite having different names — Fannie Mae’s program is called HomePath, and Freddie Mac’s is called HomeSteps — the programs are very similar. Owner-occupants get exclusive access for the first 30 days the homes are listed, so you don’t have to compete with deep-pocketed investors looking for low-priced homes. What’s more, you could receive financing incentives if you qualify for and use one of the program’s mortgage loans.
You only have to live in the home for a year — After that you can sell, potentially at a profit.
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