Most Americans are quite patriotic and are happy to enlist in the military in order to serve and protect their country. In 2010, 2,266,883 Americans were serving in the U.S. military. If you happen to be serving in the military, this doesn't necessarily mean that you have to put the rest of your life on hold. In fact, you can still juggle many aspects of your life—especially wealth building. One of the easiest ways to build wealth is to invest in real estate, and there's no better way than investing in a custom built military home while you are enlisted. Here are 3 tips that can help you make a more informed investing decision.
Try to Fit More Rooms into the Custom Design of the Home
If you are single, you might be tempted to get a custom built home that is similar to a bachelor's pad; however, if you're thinking about the future, you'll opt for a larger home with more rooms, as you won't be paying a lot extra for them. You can start building wealth while still enlisted in the military by renting out any of the rooms that you are not using to other servicemen. Depending on how much your mortgage is, how many rooms are available and how much rent you are charging for each room, you might be able to pay for your mortgage through rent. This way, you're essentially having a place to live for free.
Even though you are renting out to fellow servicemen, make sure that you still do your due diligence by performing a background check. You should also take the time to call all for the references that are listed. You never know when someone may make poor financial decisions and come up short with rent frequently.
Spend Extra Time Deciding on Property Location Rather than Home Design
While the architectural and interior design of the home is important, it is not going to affect how much your house will be worth in the future. Instead of scrutinizing over the blueprint of the home, spend more time considering the property location that you will be buying. In particular, choose a location that is convenient for families. This is largely because service members tend to marry and have kids at younger ages than their civilian counterparts. You'll be able to charge a premium on rent or you'll attract more interested buyers if your house is built in a place that is kid-friendly.
For example, properties that are close to schools and grocery stores will tend to increase in value more significantly as the community develops. This way, you'll be able to charge more for rent each year, and your house value will also skyrocket with time. Consider asking real estate agents regarding whether any developments have been planned in certain neighborhoods for the future. You might be able to snatch up some of the less developed properties for cheap right now while the development projects have yet to start.
Spend Extra for High Quality Building Materials
Keep in mind that it is a landlord's responsibility to maintain a property. If you don't want to be running into problems year after year, make sure that the foundation of the house is solid. Splurge the extra money needed to get high quality building materials that will last for years to come. Higher quality materials will require less maintenance and repairs.
Not only do you want to ensure that the architectural structure is strong, but you also want to splurge on insulation. Make sure that the home is as energy efficient as possible; otherwise, you'll find yourself receiving hefty energy bills year after year.
Investing in custom built military homes can really help diversify your financial portfolio. Not only will you have an attractive real estate property on the market that is in high demand, but you will also be able to earn passive income in the form of rent from the property even if you are no longer enlisted.Share