The younger generation is careful about money and investments. Unlike the older generation, they pretty well know how and where to make the right investments. Besides saving in a bank account, young millennials have resorted to mutual funds and stocks to make some quick and assured money in a short time. Besides they have also started investing in real estate at a young age, sometimes as early as in their 20s. Going by the statistics of the market research it has been observed that the young generation is bringing about a huge change in the marketing landscape of different industries, especially the real estate sector. The young generation represents a class of the society that is tech-savvy and well-informed about the happenings around and what is the current market standing at. Since they start their careers at a very young age, they are well aware of the economic policies of the country and what would garner them profit in the long run. If you are one among the millennial class and looking for some profitable investment, give real estate a shot. Investing in a property in your 20s is one of the best decisions that you can make.
Let’s now take a look at some of the advantages:
When you are buying an investment property in your 20s, it is obvious that you would take a substantial amount of loan from a financial institution for support. If you have availed a home loan, you can save some tax under the Income Tax Act (80C and 24 B).
You can actually invest in real estate with a little money of your own (as the down payment) and get the rest of the amount as a home loan while also saving huge on taxes. So getting an investment property at a young age will increase your savings when you retire from your job.
By investing in a property you are not just saving taxes but also creating an asset registered in your name. Over the years, the value of the property gradually increases depending on the development of the neighbourhood.
If you consider real estate as an investment option, here’s a plan. You could start by investing in a smaller property at your young age and as you increase your family, you can exit from the smaller property and use the money to pay for your next property upgrade while availing the loan for the balance amount.
Availing hassle-free loans
The younger you apply for a loan, the easier it is to get approved. When you are considering investing in something as big as a real estate property, your first step would be to accumulate enough cash and plan your finances well. The rest of the amount you can take as a loan. You can even opt to invest in the property with a small amount while taking a substantial amount of loan. You can also choose a lower interest rate on the loan amount and have a lot of time to repay off the loan.
However, you can also make some lump sum payments when you receive a bonus to repay the debt. But make sure that you repay the loan amounts in time to keep up a good credit score.
Higher appreciation rate
Investing in a property at a young age and watch its price appreciate with years. Real estate is a promising investment option that is sure to bring you good profits by the time you decide to retire. However, the rate of appreciation depends on the location, accessibility, inflation, market demand and the economic condition of the country. But if the property is in a rapidly flourishing location, the price is expected to appreciate by 10-20% annually.
You can rectify your real estate mistake
This is subjective from customer to customer. Young home-buyers can often make mistakes when buying their first property. Buying a property requires a lot of knowledge and experience. If you have made a mistake while buying your first property, then you will have enough time to learn about the strategies of the real estate market trends and know where to invest for profit. You will be educated for future property investment and know about the factors to consider before investing your hard-earned money.
How to invest in real estate at a young age?
It is the best plan to start investing in real estate at an early age. But since you are lacking experience, it is common that you might make mistakes. So here are some tips for you to make minimal mistakes while investing in real estate property.
Get some advice
If you have an acquaintance who started investing in property at a young age, you can take some property advice from him/her to avoid making mistakes. On the contrary, you can also contact real estate agents and brokers who will help you understand the real estate market better and guide you to invest in a better option.
Being a tech-savvy generation, it is not actually difficult to get real estate information over the internet. If you are planning on buying a property, research is the best way to keep yourself abreast to learn the complex dynamics of the real estate market. Subscribe to real estate blog pages or follow their social media pages to compare prices and know which property seems lucrative for future returns. Also, read articles and magazines that provide information on real estate trends and the profitable investment areas in your city. You can also consult real estate builders, experts from property portals, agents and brokers.
Also Read: Factors to consider while buying a property
Start saving early
If you plan on buying a property in your 20’s, start saving money enough to pay the down payment while the rest of the amount can be taken as loan. If you are facing some difficulty take the help of a financial planner to design a strategy for you to accumulate enough savings to start with. Also, make sure that you maintain a financial discipline by being up-to-date with your credit payments. This will support your CIBIL score and is one of the first steps to avail a hassle-free loan.
When you are investing early in your years, co-borrowing s a great option to share costa and charges but you also need to make sure that you have it legally settled so that even if your co-borrower backs out at some point of time, you don’t have to bear the financial brunt.
So, you can actually buy property along with one of your trusted friend if he has the same financial interest to share the loan cos and other charges like stamp duty, registration cost, maintenance and repairs.
As a young property buyer, you must be proactive in learning about the investment process and lowering your risks. If you are considering to purchase a property in your 20’s, allow Honer Homes to help you find your dream home. Start your investment journey right away and reap the benefits later in the years.
Buying a gated community apartment in Hyderabad is one of the best real estate investment options. The high potential areas for property seekers in Hyderabad are around Gachibowli in Gopanpally, Nallagandla, Nanakramguda and Tellapur. Gopanpally is the next upcoming residential area with IT crowd near Gachibowli. Honer Vivantis by Honer Homes in Gopanpally is a luxurious gated community project with 2 & 3 bhk apartments for sale. It is a perfect dream home for the young investors in Hyderabad.