When it comes to property investment, people usually wait till they feel the timing is right. However, it is better to get started as soon as possible, which is why the Gen Ys should start investing early.
A millennial is a person who is aged between 18 and 34 years of age, also known as Gen Y. If you fall under this category, now is a good time to consider investing in a property.
While it may not be easy – it is challenging and needs a huge amount of patience and knowledge – young adults have time on their side.
Increasing financial leverage is a key benefit of property investment. Most properties enjoy a certain increase yearly, which is why it is advisable to invest from a younger age.
An investment in one’s 20s has a higher chance of capital appreciation maximisation, provided the objective is to get long-term gains. This is because the price has been able to appreciate for a longer duration, compared to an investment made by a person nearing retirement age.
The amount of risk that one person can withstand can also have something to do with the person’s age. A younger person may be more willing to take on risks, compared to someone who is nearing the retirement age.
When one decides to invest in a property, it is akin to adding to one’s portfolio of assets. When managed well and all payments cleared, it will remain an asset, while providing passive monthly income including capital appreciation.
In order to ensure that there is a successful investment, there should be a right mindset and plan, where young millennials should heed the tips below.
1) Be in the know
Gen Ys are tech-savvy, with information right at their fingertips. With the aid of apps, online courses, financial and educational property websites, blogs as well as social media, people are now simply a click away from valuable guidance.
The most important part is to read up on financial and investment books plus attend talks and forums, in order to get the research done right and have the proper knowledge base, before venturing into property investment.
2) Consider a shared investment
Opting for a shared investment with someone trusted is a big move, but it will ease the financial burden and make investing more appealing, while keeping the risks involved to a more manageable level.
3) Buy to generate income
Have you ever considered letting other people pay for that monthly property installment? If that idea sounds crazy to you, consider that when you buy a property for your investment, you would consider renting out the property.
The tenants would not only be paying for the investment, but investors would also get capital appreciation.
4) Risks kept under control
Investing at a young age is beneficial for a number of reasons, one being that they can make the most out of their money with time on their side. Equally important is keeping risks under control. For beginners, make sure to choose something within budget and have a backup plan.
For best results, have a ‘trading up’ mentality, where you start with more affordable properties, before upgrading as you continue to invest.
5) Choose the right property
Finally, make sure that the right property is chosen, one that will only grow in value. Location plays a major role, in addition to the surrounding areas if there are any readily available amenities.
Other factors that need to be taken into consideration include growth indicators, upcoming / existing infrastructure, as well as the reputation of the developer.
Source : http://www.starproperty.my/