16 Aug Buying Real Estate in Your 20s – Get ahead of the Game
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 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. The most notable advantage is that of TIME. Remember that old saying, “It’s not about timing the Market, but Time in the Market” that makes an investment successful. This is very much the case for property.
Has there ever been a period in your life when you’ve looked back over the past 20 years and said, “Wow I’m glad I didn’t own a property”. Of course not, property has always gone up over time and will continue to do so. Just make sure you have a long term outlook and remove the risk of “time” from the equation.
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:
- Form strong savings habits – saving your money from an early age and consistently over time will give lenders the confidence they need to lend you money.
- Watch your credit history – based on the same principle of confidence, a clean credit history will help to pave your path to successful investment.
- 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:
- 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.
- 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.
- 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 team can help. Call Astute Investments on 07 5530 8407 for real estate expertise and more.