Am I Too Young to Start Investing In Real Estate?
The answer is no. You are never too young to start investing in real estate. In fact, an increasing number of personal financial experts are encouraging people to begin investing in their early twenties. The idea of investing in real estate early, especially if you have not yet purchased your first home, goes against the accepted notions of personal finance. It goes against how most young adults approach life post-college.
Time Is On Your Side
Despite the fact that most young adults have little to no credit, being young and on your own is amazing. For the first time in your life, you are able to make your own rules, live where you desire, travel where you want, and buy what you want. However, after a while, this type of lifestyle can get old – particularly if you are thinking of the future and the broader personal finance goals you want to achieve.
All of the money you are investing in “living the lifestyle” while residing in a crummy shoebox apartment could be invested in building a real estate empire through residential or commercial real estate. Although it requires discipline, building your credit and saving money towards paying your bills in a timely manner is not difficult. In many instances, that will be all that is required for you to qualify for a home loan. Ultimately, penny pinching or frugality can provide you with a wealth of savings that can then be used to purchase a distressed property or for a down payment on a home.
All the Right Financial Moves
Purchasing a home at this time in your life makes financial sense. Not only will you be creating an income stream, but you will also learn the value of fiscal responsibility at a young age. This will give you a financial head start against your friends and acquaintances – most of who will not be able to tell you the difference between an all-in-one mortgage and an accelerated amortization.
Perhaps, most important of all, investing in real estate at a young age provides you with an invaluable education. Of course, the money is always enjoyable, but you will also be developing and fine tuning new methods of thinking. Real estate investing often involves waiting for the right deal to come along, and this will teach you patience, determination, and problem solving skills. You will develop a unique perspective on how to assess properties and an understanding that money should not be the only determining factor when making an investment.
Now Is the Time
According to a recent report from the National Association of Realtors, home prices are slowly rising. It is simply a matter of when the market will rebound. Investing in distressed real estate right now will enable you to own a valuable investment for less than the market value.
Investing in real estate at a young age will provide you with benefits that can last a lifetime. Keep your eyes wide open, be shrewd and aggressive, and do your homework. You’ll soon reap the benefits. How are you planning your real estate investments? Share with the Young and Finance community!