Many people begin their property investing journey at a young age, gaining early long-term benefits.
However, being a young property investor also means you may face several obstacles and challenges along the way.
Here are eight essential tips all young investors should consider before starting their property investing journey, in order to get the best possible results.
As a young property investor, there are several hurdles to overcome when preparing for your first investment property.
One of the greatest challenges as a first-time property investor is saving enough money for a deposit.
This can be difficult for young investors because of the amount required for a house deposit, where generally you need at least 10% of the purchase price.
Below are eight essential tips that can help young investors tackle these challenges and guide them to smarter property investment decisions.
A mortgage broker can assist you through the financial process of purchasing an investment property and the correct steps to get you started on the right path.
They can do all the legwork for you in finding the right loan to suit your circumstances, plus take you through the entire application process, help you apply for any government grants or incentives you may be entitled to and keep you updated with the progress of the application.
Consider making a few temporary sacrifices that will help save you money and be better financially prepared when it comes time to purchase your investment property.
Here are a few ways you can make wise money-saving sacrifices:
Learn more about budgeting for property investing here.
Don’t be afraid to seek your parents’ help if possible; they can help contribute to part of the investment such as the deposit, or even act as a guarantor on loan.
Learn from other investors who started investing in property at a young age or who began investing with a low income.
These investors can you give you great insight into their property knowledge, along with mistakes they made and how you can avoid them.
It’s easy to get caught up in the idea that you will see results immediately, however, property investment requires time and patience.
Property is not an investment where you will necessarily see your desired results immediately, therefore, consider a 10-20 year investment plan when starting your portfolio.
Create a detailed strategy outline on the type of property you plan to invest, how much money you intend to spend, and any other expectations such as repairs and maintenance.
Here is a list of the most common property investment strategies and links to direct you on how to get started with each.
Negotiating is a vital skill to acquire as a property investor. By knowing how to effectively negotiate, you have a higher chance of receiving a better deal on the property.
Practice negotiating so that you have the upper hand on your next investment.
Be sure to pay all bills and any loan payments on time.
If you are consistently missing payment deadlines, it gives lenders the impression you’re likely to miss a payment in the future, therefore hurting your chances of getting a home loan.