Investing in rental properties is often put off as something you should do later in life. When, perhaps, you are more affluent, experienced, and established. While there is nothing wrong with this point of view, it is completely false.
Entering the investment real estate market early is not only possible but also beneficial. You shouldn’t let a lack of six-digit salary or market experience hold you back. Setting up your own wallet is a real opportunity. However, as long as you are prepared to commit to it. Unfortunately, as you might expect, it is not without its challenges.
While age will limit your options for home loans and what and where you can buy, you should always remember that your first real estate investment is only the beginning of your property and portfolio ladder.
Here are some tips to help you kickstart your real estate investment career while you are still young, before you start plucking your gray hair out.
REDUCE LIVING COSTS
Working hard and saving money may mean you can still afford to buy, but it may no longer be a dream of a quarter acre or an apartment.
The Financial Capacity Committee recommends that one way to reduce the cost of living is to review your bank statements and identify weekly running expenses. Is there any way to reduce expenses? Perhaps change your ritual triple shot latte to a delicious cup of instant coffee. Or, consider packing your own lunch instead of buying it every day.
Ironically, the greatest expense is likely to be the rent that the landlord demands weekly.
While the thought of putting up with the constant bullying of your parents each day may discourage you, getting back into your family can help speed up your savings and dreams of someday being the one to benefit from the weekly rent payments! Of course, there is also an added benefit of cooking your mom.
ORDER YOUR DEBTS
If you have any debt, now is the time to settle it. This can include car loans, personal loans, and even credit cards. At worst, you could end up with a negative credit rating, which is one way to end your meeting with a broker or lender and with a credit denial very quickly.
The savings you’ve already accumulated from living in your parents’ home will surely help you pay off any debts and bills that you may have.
GET USED TO SAVING
In addition to making sure you have enough money set aside, lenders will also review your recent bank statements. To make sure you save regularly. Therefore, every week you should put aside a certain amount on an account you do not have easy access to.
While it comes with sacrifices, real estate investment is still an opportunity for everyone, regardless of age. There is also an added benefit – who doesn’t like home cooking!