Traditionally, people begin to invest in real estate in their 40s or 50s, when they feel they are enough settled in life to handle such a heavy investment. However, lately the trend has been that young people in their 20s are beginning to recognise that investing in real estate is an extremely profitable option and are now beginning to acknowledge that it is more profitable to own a home than to rent one. Given below are some of the advantages of early investment in real estate:
You have time on your side. By beginning to invest during the early stages of your career, you can take your time to research and learn the market. You can take baby steps into the market, study everything and then take a decision. Even if you make mistakes, you have time on your side to correct them and to eventually reap benefits from your investments.
Easy availability of loans and easy repayment. When you are young, you have a longer period to pay off your home loans, without stress. Your age gives you the option of choosing long repayment periods and availing of lower interest rates.
Your risk management strategy is different. A young person in case of risks or conflicts will handle it differently as compared to an older person. Your high energy and enthusiasm will help you deal with and manage risks easily and your approach to the investment will be unique.
You will acquire financial management skills. Investing in property will require handling of cash and management of money. Repayment of loans, handling rental income, etc., will equip you with more astute financial management skills.
Early retirement is a possibility. If you invest in real estate early, you will begin to get benefits from your investment early too. This way, you can retire early and spend the money and time doing the things that you want to do.