Are you in your twenties and looking to make your mark in the real estate market? Investing in real estate young can not only be a smart move financially in the long term but also the short term too.
You might be asking, 'But how do I even start investing in real estate?' It's a lot simpler than you might think.
In this article, we will take you through the 5 ways to begin your journey as a real estate investor at a young age.
So before long, you could have a portfolio of properties on your books and be looking at a comfortable and early retirement! Read on to find out more.
1. Don't Let Financial Limitations Get in Your Way
If you are concerned about having little to no capital to begin investing, this isn't actually a worry or concern. You can start off investing with minimal cash flow and capital and still manage to get on the housing market.
And what about if you happen to have bad credit or student loans to pay off? That is also not a problem, there are ways to work around your credit history and expenditure up to this point.
Grant Wydeven who is an investor and entrepreneur explains on his website and Youtube channel exactly how to go about building a property portfolio even if you have little in the way of investment or even a history of bad credit.
Check out his website or Youtube channel to get the full details on how exactly to get started on your real estate journey.
2. Educate Yourself on the Rental Market
Money can be easily made on the rental market if you know how to purchase the right kind of property in the right area to let out. However, a lot of people don't do their research when it comes to buying the right kind of property.
Do your research on the up and coming areas of a city or rural area. Look at the trends and the way that the housing market is going in that area. Are there good schools nearby? Is this property going to be marketing at young professionals, a starter home or a family home?
Know who your target market is and invest accordingly. By making a conscious decision to find out the fluctuations and direction of the housing prices in your area will allow you to invest wisely and make the right decisions on your properties.
The worst thing will be if you select a property in the wrong area that doesn't have the amenities that potential renters require. This could leave you with footing the rental bills and utilities.
3. Buy Property Earlier While You Are Flexible
If you are thinking of buying a property in your early twenties, don't hold off on making that purchase. This is one of the best times in your life to buy property as you have minimal commitments and expenses that you have to consider.
The danger is that as you begin to reach your late twenties and early thirties, your financial commitments begin to increase. For example, if you get married, buy your own property or when you start having children. All these things are a massive expense, especially if you want to be starting a college fund for every child you have.
Buying an investment property in your early twenties is a sure-fire way to get yourself started with your property portfolio, everything is set up to appreciate in value while you have renters paying off the mortgage.
You may even be able to make a profit on top of your rental income that can go into a pot to buy another property.
4. Buy a Duplex and Split It in Two
This is a great way to give yourself two properties for the price of one! Buying a duplex property can be a fantastic investment for a first property if you need a property to live in also.
By having a bit of work done to separate the property in two you are able to provide yourself somewhere to live while also having the rental property to rent out and pay the mortgage off.
This can be a great stepping stone for your property journey as it frees up your own mortgage payments to save and invest in other rental properties. It's not an arrangement that you have to live in forever, but it frees up some capital for you to begin working on your next property purchase.
5. Buy as a Home Owner or Occupant
When you buy as a homeowner or occupant you can buy a home with little to no upfront costs with certain loan companies. And there are some loan companies that will accept as little as 5%, which if you buy a cheaper property could be as little as a couple of thousand dollars.
If you live in this property for usually around a year, you can then transition this into a rental property and start renting it out. This will allow you to hopefully pay off the mortgage and allow yourself a bit extra on top to save and invest in more property.
Investing in Real Estate Young: Where Can I Find Out More?
We hope that this article on how to go about investing in real estate young has given you some ideas about how to make your property dreams a reality.
Don't delay investing in real estate if you have the opportunity to do so. Even if you have limited funds to invest, there are options and ways to go about getting on the property ladder for everyone.
If you enjoyed this article, why not check out our previous blog posts on mortgages and housing?