Have you recently sold your home and are looking for the best investment areas? We get it; your first investment after you sell a property is usually the hardest, which is why many people would rather have someone else invest it on their behalf.
So this brings us to the most important question; how do you invest your money after you sell a house in Kansas City, for instance?
We have prepared a list of low-risk investment opportunities with good returns after you sell the property.
Real estate is one of the best places to invest, and you probably already know that by now, after selling your first house. The best thing about investing in real estate is that you don’t need a lot of capital to start investing. For example, you can use the money you got from selling your house to buy another one and sell property once it appreciates in value. However, it’s not easy to say if real estate is a short or long-term investment since you can sell it as soon as you get a buyer willing to buy your house at a profit.
Alternatively, you can opt to become a landlord and earn rent. Depending on the rent you’ll be charging your tenants, the money you’ll be making may be enough to cover mortgage payments for another home and leave you with some to save up.
Investing in a mutual fund may sound a bit cliché, but it’s still regarded as a good investment for a reason. With a mutual fund, the money you invest would be used for purchasing stocks and bonds carefully chosen by a mutual fund company. The good thing about investing in a mutual fund is that all transactions and investments are done and monitored by professionals. This makes it safer than traditional stock buying, where you may lack the experience to trade or incur additional charges to hire professionals to do it on your behalf. However, although mutual funds are low risk, they are regarded as a long-term opportunity since they take years to bring significant profit. So if you want quick returns on your investment, a mutual fund is not for you.
Seller Finance (Owner Financing)
Many people have never heard of it before, so we will explain what it entails. Seller finance is a process in which a homeowner planning to sell their home acts like a bank by financing the purchase of their home on behalf of a buyer. This may be necessary when a willing buyer cannot get a bank loan and cannot raise enough capital to purchase the house upfront.
The seller sells them the house and agrees to collect down payments in installments. You can charge a down payment of 20% or more than the listed price for your home and set a payment period, for example, of 3 years. As security, the buyer will give you a promissory note to show they have agreed to the deal and a mortgage document that will enable you to foreclose the agreement if they fail to meet the terms of the deal. In addition, you can give away the deed on the house or retain it, depending on your agreement with a home buyer.
Save Your Money
Savings can also serve as an investment. We recommend saving your money in a money market account since it offers good interest with minimal risks. You won’t be free to withdraw the money when you want, so only save what you won’t use soon. Most financial institutions will still allow you to withdraw in case of emergencies, but that would cause you to lose out on interest earned.
Your first investment is usually the hardest to make. After the pandemic led to the failure and closure of many businesses, people are looking for low-risk investments that would give them good returns in the future. Real estate and mutual funds are some of the best investment opportunities that will benefit home sellers looking to reinvest their money safely. However, remember to always do your due diligence and research before settling on any investment.