The sooner you start, the better. This is true when it comes to investing which is why a lot of young people have embarked on their investment journeys and experience long-term benefits early in life.
However, it is not without challenges and for young investors, it may seem a bit daunting, but when you are aware of what to expect, you may be able to overcome these obstacles and have an amazing property investment journey.
One of the biggest hurdles for first-time and young property investors is saving money for the deposit, which can be very challenging where one does not only have to worry about 10% of the amount, but the absence of any credit background makes it difficult for them to get approved for a loan.
But worry not, because there are ways to assist young investors to get a good start in property investing and make their investment journeys as pleasurable as possible.
Find a good mortgage broker
First-time or young investors would benefit a lot when having a reliable mortgage broker to help them out.
Mortgage brokers can assist investors on the proper steps to help them get started and avoid mistakes along the way.
Professional brokers can facilitate in searching for the ideal loan packages and processes that would suit an investor’s needs and preferences. They can also assist in the entire mortgage application process, facilitate application for government incentives of grants, and provide updates on the progress of the applications.
Allow for short-term sacrifices
Prudence and discipline are critical in aiding young investors and one of the best ways to do this is to allow for some money-saving adjustments such as a temporary change in lifestyle and spending.
Saving money for the deposit can be quite a challenge, especially for younger people. However, with the right mindset and resolve to achieve your property investing goals, there are several ways to help you save money.
You can plan and choose to make some short-term changes such as sharing a home with friends or family, live with parents, take on a casual job during weekends, prepare your own meals instead of dining out often, look for a rental with lower rates, or engage in house-sitting, just to name a few.
Ask help from your folks
There’s no harm in trying to ask for help from your parents, especially when you have a plan and how you can commit to it.
It does not have to be a handout. Parents can help out by offering them to be co-investors in your venture or serve as guarantors on your loan application.
Get insights from fellow investors
Learning best practices and getting tips from experienced investors who started young can provide you with great ideas and gain inspiration from them.
They can help provide you with knowledge and learn to avoid mistakes that they have experienced in the past so you can be better prepared and know how to prevent getting into such situations in your investment journey.
Consider it as a long-term investment
There’s no question that it takes time before you begin to see the fruits of your labour, so consider it a wise move to plan for your investment by looking forward to the long-term.
Remember that property investment does not necessarily guarantee immediate returns so it would be safe to consider a 10 to 20-year investment plan when developing your investment portfolio.
Plan and develop your property investing strategy
It is always wise to develop more than one strategy for your investment and not make the mistake of putting all your efforts into one method alone.
Depending on your investment strategy, you can consider concepts such as rental, buy-and-sell, capital growth, positive cash flow, off-the-plan, renovation, subdivide, discount, and vendor finance, just to name a few.
By developing your strategies, you can diversify your income streams and grow your portfolio consistently where one income stream continues to run smoothly even if there’s one that may not be doing as well.
Develop your negotiation skills
Negotiating is a very important skill if you want to succeed as a property investor, which can be useful in getting good deals or closing a great property transaction.
This is a great skill to give you an upper hand on your next investment.
Maintain a clean bill of credit health
Building a good and reliable credit background can be as easy as paying your bills and loan repayments on time.
This will help your credit health a lot by giving lenders the impression that you are trustworthy and serious about your investment journey.