You are never too young to start investing in properties
Talk to any working-class Australians about their future financial plan and home ownership is likely to come up in your conversation. So, when is the right time to invest in your own property? If you have a steady flow of income, stable job, and you have no other heavy financial constraints, then you’re better off starting early.
Property is a long-term investment, something that comes with a lot of risk, however, this is something that you can overcome with proper research, planning, and right execution. If you’re set on taking the plunge with property investment, then follow the tips below:
Start with the right mindset. Most young, first-time investors look to get rich as fast as possible and pay little mind that property investment is a serious commitment. Consider your long-term financial independence by thinking 10 or even 20 years ahead in your investment plan. Talk with others who invested in properties at a young age. This will give you a more realistic view of your financial journey, what sacrifices you will face and of course, the sweet rewards.
Start saving. This may seem like an impossible task while you’re still young and starting out, lenders look for evidence of prior and consistent savings over time, so it’s vital to start now. Start a good saving habit from an early stage, but putting aside a specific amount of money from any income every month and ensure that you stick to it!
Pay heed to your credit record. Many of us consider it normal to pay bills past their due date and have multiple debt while we’re still young, but this won’t do us any favour when trying to acquire an investment property. The recent changes to Australia’s credit reporting system allows them to see your recorded credit report. This can give you disadvantage as it gives an impression to lenders that you’re likely to miss your payments in the future.
Brush up on your negotiating skills. Not all of us are adept at negotiation, much less with a property’s price. It will take a lot of confidence to be able to negotiate a good price, but practicing this skill will let you have a better chance of getting a more favourable deal not only with the property itself, but also with any renovation work that’s necessary in the future.
Tax considerations. Now that you’ve decided to acquire investment properties, it is time to get serious about your taxes. Look for specific, personalized advice for your unique circumstance and ensure that you choose an accountant who’s an expert in property tax, since they’ll ensure that your investment is financially stable and profitable.
Choose a good property and community. It doesn’t matter if you follow all the tips above if you missed this one. You need to do a lot of research in the property you’re eyeing as well as the community where it’s located. For instance, consider the houses for sale in Melbourne to see homes that are located in a prime location complete with good facilities and coupled with a great environment. You may even start your first investment there, so check it out.
Summary. Now that you’re equipped with the basic tips on property investment, you’ll have a better chance at succeeding, regardless of your young age. Good luck!