5 Reasons Why Investing in Real Estate is Beneficial from a Young Age
Tuesday Jun 14th, 2022
Investing in real estate is not a risk-free endeavor, but it can be a sound investment. When you invest in real estate, you are investing your money into the property and the property is expected to provide you with a return on your investment. As one of the world’s Top 10 Brokers, I wish I started earlier. Having a plan early, means you up your chances for success – and who doesn’t want that?
Why Invest in Real Estate at a Young Age
There are many reasons why investing in real estate is beneficial from a young age. These include the fact that it provides stability, diversifies your risk, and provides you with a hedge against inflation. It also has tax benefits and low risk returns on investment.
Luxury of Time
Starting early in real estate is the key to success in this business. You need to invest your time and energy into learning about the market, understanding the process and getting your foot in the door. When you are young, you will have time to do your homework on real estate, go around easily, explore more, and will have time to take risk of property investment since you will have time to get out of the risk too.
Getting Loans will be Easier
Investing in real estate at a young age means better chances at getting loans. You can get loans easily when you are young, and this will help you to buy a house or property at a low cost. When you get older, the loan will be paid off and you will have more money to invest elsewhere.
If you invest in real estate at a young age, you can learn better financial management skills that will help you grow your wealth over time. Getting into finances at an early age will help you understand the importance of managing cash flows and how they can help you manage your finances. You can also use these skills to manage your own finances and plan for the future.
Can Reach Break Even Earlier
If you are buying real estate at the age of 25, then it would take about 18 years for your investment to pay off. If you were to buy it at the age of 35, then it would take about 34 years for your investment to pay off.
If you are buying real estate at a young age, then you can definitely expect a quicker break-even period if you are letting out the property. This is because there is less competition in this market and therefore, the price of your property will be higher. So, it is safe to say that if you enter real estate investments at an early stage, you will reach the break even earlier.
If you invest in real estate at an early stage, you can expect an early retirement. Real estate is a great and long-term investment that can provide you with a significant amount of passive income over the course of decades. If you buy a property for $100,000 and sell it for $200,000 after five years, then your return on investment would be 20%.
If you’d like to consult with me, browse my portfolio of potential investments, and help me help you strategize to maximize, contact me today.