To invest in property at an early age you will need to overcome a number of obstacles but it can be worth it. Your early 20’s is a great time to start building your wealth. Time is on your side because you have the ability to grow your savings for a longer period of time.
The challenges you have to face include working out how to start investing and where to invest. As an aspiring young investor you may find yourself with a dilemma. However, there is no need to worry. Here are five pieces of property investment advice:
Tip #1: Practice financial discipline
Financial discipline means being able to save money every time you receive your salary, being able to spend less than you earn, having control over your spending habits, and learning where to invest your hard-earned cash.
Tip #2: Understand the real estate market
Having a good understanding of the real estate market is imperative before you actually start investing. You can educate yourself by reading blogs, online forums, books, and other sources of information on real estate. This way you can get an idea as to what location and what type of property you should invest in to get a good return on investment.
Tip #3: Learn about mortgages
Real estate shouldn’t be your only concern, you should also learn about the different types and features of mortgages. This way you know how to secure a good mortgage that has a competitive rate, with loan features like an offset redraw facility and the ability to make additional repayments.
Tip #4: Maintain a good credit score
At an early age, it is a good idea to maintain a clean credit file. To do this, repay your loans on time, manage your debts, keep your credit card balances low, apply only for credit you really need, and make sure to always check your credit report to make sure that it’s free of errors.
Tip #5: Start small
As a young investor, you don’t want to overstretch yourself with your first investment property. Don’t be afraid to start small by investing in a simple one-bedroom unit. Renting out a spare room in your own home can also be a good way to get you started, plus it can help you build your savings.
Saving up for a deposit is your main goal. Time is your greatest asset now, so start while you’re young!