Jeremy Kaplan
Choosing to enter property investment at a young age is a bold decision, but not one you should shy away from. To get the most out of your investment and to ensure you reduce the risks associated with property investing, it is essential you make an educated decision which has been made through a multitude of research. Many people consider investing in property at a young age, however are reluctant to take the plunge. There is no reason why you can’t start young, in fact, getting on the property ladder as early as possible will stand you in good stead. There are several ways in which property investment can be affordable and practical for young people and one that can serve you well for years going forward. Investing in the future allows you to perhaps retire earlier or make it easier to buy your dream home.
Investing in property when you are young can often be the better option, and those wanting to buy their first home are realising this is becoming more unreachable due to soaring house prices. In the UK, the average deposit for first time buyers is £33,000 and with a combined average household income of £50,674 the average mortgage payment is £780 a month. However, Experian suggests that with a 10% deposit on a £235,000 property, the average monthly mortgage payment is £1,300, leaving venturing on the property ladder an expensive, almost impossible feat for many.
Young smart investors can use the dramatic differences in price around the country to their advantage and purchase cheaper rental property with a far smaller deposit in areas known for lower value homes. Opting to invest in properties whereby monthly payments from tenants are higher than the mortgage repayments is a wise choice, as this can help to provide a cash buffer should any unexpected payments arise due to unforeseen circumstances. Sky Gardens, a residential development in Liverpool by RW Invest has luxury apartments starting from £55,995, with yields of 7% assured for two years, these lucrative opportunities mean that getting on the property ladder can be easier than once predicted.
Investing while you are young can ensure you plan and prioritise for the future better. Successful property investors often have large diversifying portfolio that most budding investors would envy, therefore it is recommended to start early. By starting out with a low-cost property that produces high rental yields with easily affordable mortgage payments, as soon as enough money has been saved from rental yields you can buy another property and experience cash flow from multiple sources. This comes with the added option of selling off a property when it is worth more due to capital appreciation if you require the funds.
Capital appreciation is one of the most sought-after ways of making money on your property, with little or no effort required by yourself, however due diligence on the area is vital. Investing in property when you are young means you have more time to experience capital growth on your property. House prices across the UK are skyrocketing, proving that over time there are immense profits to be made. We are currently in a period whereby the housing market is quite unique as never before has the acceleration of house prices left so many other cities trailing so far behind.
One of the most important factors to consider as a potential property investor is research, strategise, consider all eventualities and explore all different investment opportunities. Get to grips with the terminology, what is expected of you and how to make the property purchase as seamless as possible. Understanding rental yields, where the market is strongest and how much the average property price is important. Be sure to absorb all information from around you and take advice from those who have experienced property investment before, learning from experiences is often the best way. Perfecting your skills and starting to invest in property when you are young can lead to a prosperous future, providing it is performed with care, precision and knowledge.
