If you are certain that you want to invest in property but are not aware of the right time to start investing, let our experts guide you in the right direction.
According to Parag Dixit, an award-winning mortgage broker, it’s never too early to start investing in property.
You should never think that your young age is a problem for foraying into property investment. However, there are doubts and concerns that beset young people, because it demands discipline, rigorous research, and patience. It also requires your time, money, and dedicated effort. This is where the assistance of a property strategyst comes in handy to prevent any mistakes.
If you can manage to squirrel away a sizable chunk of your income, you benefit from the capital gains when you sell the property, and you can also obtain a steady source of income through renting it.
Here are the reasons to start investing in property at a young age.
- You will generate additional earnings over time.
Being a young property investor has several advantages. As a young person, the biggest asset to your credit is time. If you start investing at an early age you have more time one is immune to poor investment decisions, but young people have more time to recover.
By investing in property at a young age you get compounding returns because the time value of money increases over time.
- Financial Benefits
There are many financial benefits of investing in property at a young age, according to our Investment Property advisors. Some of them are as follow-
- You increase your cash flow
A noteworthy fact of investing at a young age is that you have the option to increase your cash flow. It yields huge benefits by the retirement of any individual. You are investing in your future, and mortgage repayments are always much more profitable than paying rent to a landlord.
Eventually, you will gain equity in the property and be able to pay off your debt.
- Property prices will appreciate
The value of your investment property will increase with the passage of time.
- You will establish a good credit history
Getting an investment property loan at a young age gives you the opportunity to establish a good credit history. With good credit history, you can obtain better home loan deals.
By getting a home loan for your investment property while young, you’ll be able to obtain better home loans. It will give you the opportunity to diversify your portfolio.
- Negative gearing and depreciation
If you own investment property at a young age, you are most likely to avail the benefits of negative gearing on your property. The cost to own the property offsets your taxable income if it is negatively geared.
- Property investment is tangible and reliable
You can exercise control over your property which hardly holds true for other forms of investing, such as shares, trading, etc. You may avail of other perks associated with it by getting it revalued, and if its value has increased then you may charge higher rent.
The earlier you start, the easier it is to build wealth. There will be obstacles, but you can not wait for the time when everything works in your favor.
Another important point is to have correct legal advice from the early stage of your portfolio, to protect your assets.
The universal mantra to get on the investment property ladder is- practicing financial discipline, understanding the property market, learning about mortgages, managing a good credit score, and starting small. This may seem daunting at first, and you may also get overwhelmed by all the complexities. We would suggest you discuss all the concerns and queries with the dedicated professional working in the field. Their tips and insights facilitate you to make the best decision of your life.
