Although, philosophically it is true that it’s not a permanent place for any of us, still we need a house to live in. There is no denying the fact that we need a home, a roof over our heads. Staying on rent forever may be a very bad proposition as renting would call for recurring monthly expenditure which would increase day by day, month-on-month and year-on-year. If that is so, investing in a property is inevitable, if not for investment purposes, for residential purposes at least.
Considering these factor, if you think rationally, investing early in the prime time of life should ideally be the right choice. The property prices would also be ticking higher taking care of the financial needs of life when the commitments are more. It renders a sense of security and adds pride to the owner of owning a property at a young age. A property starts reaping yielding income month-on-month apart from the escalating capital value. At a young age the commitments are less and as one age, the income is most likely to increase lessening the financial burden.
In most cases, if you invest at your twenties, you are at a much better financial stance by the time you marry and start having financial commitments. Properties can be a source of parallel income giving a way to retire early in life and spend life in leisure and pursue the passions that one always desired in life. Real estate is the right sector to invest as this is the industry which has created most number of millionaires with ever-increasing prices. Like these, the benefits of investing early in real estate are myriad. And if you have to ultimately invest, why not invest early. That will only relax you of the financial burdens that you are anyway going to be entangled in. Here we discuss few of the benefits of investing early in real estate that you can’t ignore.
Real Estate: Secured & Assured Returns
Unlike all other investments, real estate investment assures you a safe and assured income month-on-month if you invest on an apartment, house or even a commercial real estate. It provides ways to get a regular cash flow forever which if invested at an early age can supplement all kinds of cash and family requirements. To have a steady flow of income, all you have to do is to be speculative and grab a land or property in the nearby areas that are of high promise and also according to your budget. Survey of the area and due diligence of the property is a must and you should rest assured that it would reap the returns that you speculate, if not more. Having a look at the nearby under construction properties and their prices should be the habit of the young investor. Try to assess the price of properties in the nearby areas online and find out from real estate forums and communities the prospects of the property you choose.
Real Estate: Relaxed mid-life
If money is essential for life and you have to anyway run for earning money to lead a decent life, why not do it early! If you do so the rest of your life would be devoid of worries that most people face. A mid-life crisis comes out of the evaluation and frustration of what one couldn’t achieve. Apart from that, the financial pressures which surmount mostly at the middle age can add to it. On the contrary, if you
have a source of steady income with quite a few assets, financial problems and stressors will be at least away from you. That is definitely a boon as you can earn for yourself and your family without working for it.
Real Estate: Tax benefits
Saving tax and tax planning is an important part as it pertains to the protection and saving your income. You can do that easily if you have properties as you get tax exemptions if you have invested on your homes and have taken home loans. If you have multiple properties, you have a recurring disposable income to invest in government bonds and insurance policies which would also help in tax planning as well.
Real Estate: Sustainable Asset Creation
Assets always help in not only providing you a recurring income month-on-month but it increases your financial standing substantially. It helps to create your financial base upon which you can delve into new ventures and make your dream come true. After all, there is no denying the fact that money can buy almost everything material.
So, if you have plans to buy a house or have a house of your own, invest early. If you cannot buy the home of your dreams, it’s quite understandable. Go for a smaller home or apartment that’s affordable and would give you enough funds to buy your dream home early in life. Plan your short-term and long-term goals early and just go for it as it is rightly said that “invest in land as they are not making it anymore.”
Key Takeaways of Investing in Real Estate at a Young age:
- At a young age the commitments are less and as one age, the income is most likely to increase lessening the financial burden.
- In most cases, if you invest at your twenties, you are at a much better financial stance by the time you marry and start having financial commitments.
- Survey of the area and due diligence of the property is a must and you should rest assured that it would reap the returns that you speculate, if not more.
- The financial pressures surmounting at the middle age can add to the mid-life crisis which comes out of the evaluation and frustration of what one couldn’t achieve but a steady income from few assets can reduce the financial stressors at least.
Early in life, go for a smaller home if you can’t afford the home of your dreams and with its value escalating, you would get enough funds to buy your dream home sooner or later.