When first-time homebuyers begin looking at homes, they often figure out a budget that they feel most comfortable with. In the end, these homebuyers end up buying something that is at the top of their budget or just above, but this is a poor practice for a number of reasons. The obvious issue with doing this is in spending more than what was planned, as there are stressful consequences that arise in doing so.
These homebuyers should consider splitting their budget up so that they can afford multiple properties. It is not necessary to have a real-estate portfolio as diverse as the languages that can be translated by All Language Alliance, Inc., but some diversity is much better than none and offers the opportunity for additional income.
This strategy requires that the home purchased for day-to-day living is more modest, but the reality is that most people end up in homes that are much more robust than necessary. The secondary purchase can be used in a variety of ways, including as a speculative property that will appreciate in value over time or as a rental property. There are even homebuyers who are purchasing multi-unit homes so that they can serve as an on-site landlord while generating extra income.