Taking on your first investment property can feel overwhelming and confusing. Speaking to an expert will simplify the process and ensure you take advantage of investing appropriately. Here’s a few reasons why investing at a young age is a great idea
Long term investing will compound in value
The greatest advantage that young property investors have is time. You have a long-time frame to buy/hold and continue to invest. Over time you will develop greater knowledge and understand the various strategies that escalate your property portfolio. In the long-term, you will witness it’s true capital appreciation. Property values can double and can go well beyond this over time!
In times were property markets aren’t performing well or in the event of a poor decision, you have plenty of time to recover and see the rewarding results that a long time strategy offers investors.
In comparison to an older investor who starts later in life, they have less time to recover from a negative return or poor decision. An older investor may suffer more fear to a younger person as they have other responsibilities before starting to invest, such as raising a family.
Property provides greater control to other forms of investment
Property has many great benefits, but one great advantage is having the control of your investment. Unlike other forms of investing, such as direct shares or bit-coin, property investing provides control around when and/or how much you want to sell it for and who you want to lease it to while charging what you want.
Having this control may seem daunting at first, but with the hep or a property adviser and a property manager, you’ll soon learn these benefits and how to use them to your advantage.
Property provides a regular income
Rental income becomes a very helpful investment return. It’s received monthly (when tenanted), but as you are investing long term, you will have the opportunity to increase your rental income. Having your youth on your side will create many opportunities to increase your income while witnessing the capital growth that you’ll likely generate over the long term.
Diversifying your portfolio
The sooner you buy your first income-producing asset, the sooner you can diversify your portfolio and buy other investment properties. If you start investing at the age of 50, you don’t have the time frame to accumulate and expand on a property portfolio.
More time… More debt reduction
Starting your investment portfolio young will allow you to reduce the debt over time. If you have little responsibility and financial commitments, you’ll be in a great position to reduce your debts. Start at the age of 30, you will pay it off before you retire while leaving plenty of room to buy more properties to add to your portfolio. If you start from age 50, you’ll likely still be paying it down after retirement. (assuming you are paying the minimum repayments)
In Summary
Property investing is a fantastic asset class. Learn more about why property is the best investment. Click here.
There are so many additional reasons why you should should start investing at a young age. If you are in a financial position to start, take advantage of your youth, contact someone like us, and we can help you becoming financial independent way before the traditional retirement age.
Best of luck and happy investing!
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
December 2018
