You’ve just moved to a new city, you’re a bit excited to get started, and you’re ready to invest.
And then you get a call from a property agent.
The agent tells you you can buy your first rental property for around $5,000 (around £3,000), or you can save even more by buying a second property for about $10,000.
But what are the pros and cons of each option?
Read on for our top picks for the best property you can get for your buck.
The Pros of the 2- to 5-Year OptionFor starters, you’ll save a lot more money in the long run.
While it may seem like a bargain now, you may not be able to afford the house or condo if you’re living at home for a few years.
But if you don’t have to worry about paying rent or mortgage for the next five years, then the money will be there to pay down your mortgage.
You can get the house for around 30 percent off its original asking price (roughly $8,000) or around $15,000 if you have a down payment of less than 30 percent.
The other options are much more generous.
For example, if you want to live in a $3.5 million condo for two years, you could get a three-bedroom, three-bathroom home for $10 million (around $13,000 per month).
If you’re looking for a place to live, a two-year house will get you close to $20,000 more per month than a two year condo.
If you want a bigger space, you can move into a larger, more expensive house with a six-figure down payment (around 20 percent less than a condo).
And if you’ve already invested in your home, a second home will get a better return on your investment than a smaller home, since you’ll be investing more in it as well.
If you want the best return, you need to choose the right home.
You’ll get more bang for your dollar with a two or three-year property.
If your budget is tight, however, you might want to invest in a three or four-year home, which will pay off more in the future.
And if your budget isn’t tight, but you’re willing to pay the premium, you should consider investing in a four- to six-year condo instead.
If the value of your home rises quickly, you won’t have a problem making that investment.
But a five-year condominium is likely to offer the best deal.
Pros of the 6- to 10-Year optionIf you already have a condo, a six or more-year rental home is likely the best option for you.
But you should definitely consider a six, since the two- or three year condos will get even more bang in the dollar.
But for a six year condo, you’d need to invest $5 million, so it’s probably a bit more expensive than a three year condo (around about $6,000 for a two bedroom, $7,000 or $8.00 for a three bedroom).
If a two, three, or four year condo is the right deal for you, you shouldn’t be afraid to put down money on a five or six-bedroom condo.
A five- to five-bedroom house can get you around $17,000, a five bedroom house can go for about the same price, and a six bedroom condo can cost around $25,000 with the down payment up to 30 percent lower than a standard three- or four bedroom.
Pros and Cons of the 7- to 12-Year OptionsIf you have more than one family member, a seven- or 12-year apartment may be the best choice for you if you can’t find the right place to rent in your area.
However, it’s worth considering the downside of living in a condo: You’ll likely have to pay more for your water and sewer bills, which can add up quickly.
And the average apartment rental in the US averages around $1,500 per month.
If the price of a condo is more than you can afford, a three, four, or six year home may be a better investment.
However you decide to go about it, it would be wise to think twice before taking out a loan on a home you can barely afford.