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Buying Real Estate in Your 20s – Get the Right Advice

When we’re in our early 20s we don’t often put much thought into money. Budgeting means successfully surviving from one pay day to the next while an investment might be considered a new car, or perhaps even a new videogame. Generation Y is often branded as generation why bother, but there is a growing trend that is defying this expectation. Around Brisbane and Australia, entrepreneurial investors are putting their money into property at a young age, and they’re enjoying the benefits that come with it.

Why Investing in Your 20s is a Good Idea

When we’re in our early 20s we don’t often put much thought into money. Budgeting means successfully surviving from one pay day to the next while an investment might be considered a new car, or perhaps even a new videogame. Generation Y is often branded as generation why bother, but there is a growing trend that is defying this expectation. Around Brisbane and Australia, entrepreneurial investors are putting their money into property at a young age, and they’re enjoying the benefits that come with it.

Why Investing in Your 20s is a Good Idea

Making the decision to invest in property at any age can be a good one, especially with the right advice. When you’re younger though, you have considerable advantages that usually fade with age.

Youth usually comes with greater flexibility and more free time, giving you the ideal opportunity to put time into your investment. The flexibility you’re afforded also means you can move around more. With the right strategy, this can allow you to take advantage of short-term investments and even develop a diverse real estate portfolio, with multiple properties in different locations.

The other advantage here is obviously responsibility. Generally speaking the younger you are the less responsibility you have for family members, spouses and children. Any risk involved in investment is ultimately yours, meaning less impact on people you care for and an easier process when it comes to decision-making.

With Property, the Only Way is Up

While it’s not true that real estate only ever increases in value, owning a property for longer can result in a greater return on your investment. Once you overcome the initial expense of your purchase, you can enjoy potential income from rent, the property’s capital growth, tax advantages, and by potentially flipping it for a profit. With more time potentially equating to more money, this is another incentive to start investing early.

Some Tips for Budding Investors

If you’re ready to jump into real estate then it’s important to consider a range of factors. Let’s start with advice that is likely to apply to you as an early to mid-20s investor

  1. Form strong savings habits – saving your money from an early age and consistently over time will give lenders the confidence they need to help you out
  2. Watch your credit history – based on the same principle of confidence, a clean credit history will help to pave your path to successful investment
  3. Look longer term – while it can be tempting to enjoy the benefits of successful short term strategies, one of the advantages of starting early is being able to reap the benefits longer term

Here are a few other investment tips that everyone should be aware of:

  1. Consider quality – in both the property and its location, always ensure quality. This goes beyond geography and encompasses things such as supply and demand, and demographics
  2. Make a check list – be sure to look for all the important things in property; like security, storage and low-maintenance and aim for wide appeal, not a niche market
  3. Get the right advice – this applies on all fronts – don’t get stuck with the wrong mortgage, loan or property. When in doubt, ask an expert

If you want to learn more about investing in property, our Brisbane-based team can help. Call Astute Investments on 07 5530 8407 for financial advice, real estate expertise and more.