Advice for Young Property Investors
Everyone would love to own a piece of real estate in one form or the other. However, getting your foot onto the property ladder is certainly not an easy task. It comes as no surprise then that most young people simply give up on their dreams of property acquisition and ownership. But the hard truth is that the benefits of property ownership outweigh the hassles of getting started. This article if focused on providing advice for young property investors to help them get started on their investment journey.
To start with it is very important that you endeavor to acquire substantial knowledge on the ins and outs of property investment. Some of the resources you can take advantage of to educate yourself include; online publications, real estate blogs, books and property investment forums. Moreover, young investors need to appreciate everything from property prices, government fees and charges, as well as the various factors that can have a bearing on real estate. In addition, a firm understanding on how property markets work is essential. Lastly, every young property investor must know about budgeting, financial discipline, as well as the various financing options at their disposal. A basic understanding of property valuations and home inspections also comes in handy.
Another important step for young investors to take is seek the advice and input of qualified real estate related professionals. It is of great significance to enlist their aid to help you have a better grasp of the prevailing market. Furthermore, they can help you better appreciate your financial position and help you pick an investment that meets your needs. Some of the professionals whose advice you can seek include; estate agents, mortgage brokers, property strategists, accounts and solicitors.
Unfortunately, it is near impossible to get started on your property acquisition journey without any savings set aside. As such it is vital to start saving early if you want to buy a property. For most young people saving enough for a deposit is possibly the single largest obstacle to home ownership. And to make matters worse ever-increasing property prices seldom correspond to salary increases. This makes it even harder for young people to get their foot on the property ladder. Here are a few tips to help you save:
- Consider living with family to enable you to accelerate your saving efforts. Rent is one of the biggest expenses most people have. Paying rent and saving at the same time is quite difficult for a lot of people. Thus, whilst living with family (rent-free) you can make some significant savings towards your deposit.
- Secondly, you can make use of high-interest savings accounts to not only help you save a get a bigger return on your money, but also show the lender that you are financially disciplined.
- It is also important to cut back and reduce non-essential spending to allow you to meet your saving goals sooner. Regardless of how insignificant you may feel your savings are everything adds up and makes a difference.
Develop a savings mindset and keep in mind that property investment will require sacrifice and commitment.
Think outside the box
After saving a deposit the next logical thing for you to do is identify a property you can afford. One of the best ways that young investors can identify property within their budget is to think outside the box. This can entail looking beyond the conventional standalone house. Consider terraced properties, multi-family units and new builds. It is important to realize that your first home is just a stepping stone to bigger things. Don’t over-extend yourself on your first property, rather you can use it to build equity that you can use on your next property. Shared ownership is another option you can explore to help you get started on your investment journey.
Young property investors must be able to keep an open mind and identify opportunities. Some opportunities present themselves in the form of neighborhoods that are not quite as trendy. In some instances, properties a little rough around the edges and requiring a little works can be priced just enough to enable you to get your foot inside the property room. When you keep an open mind, you will be surprised at just how many opportunities present themselves.
It is important to always stay informed and up-to-date with what’s happening in the property market. There are so many resources that you can make use of to get a real understanding of the property market. Property market reports will give you a sense of property prices and what to expect as you aim to get onto the property ladder.