By Rishabh Siroya, Founder, Legend Siroya Realtors & Secretary, Naredco NextGen
Investing in real estate at a young age may seem challenging but in the contemporary world, millennials are foresighted, thus commencing the practice from an early age.
At present, the market is glutted with a broad range of real estate properties from credible builders and developers, according to the much-needed push to the aspiring buyers. It is exactly like how people invest in stocks because of accessibility and correct information. The real estate sector is also much streamlined now, so investment opportunities and information accessibility have drastically improved. With the help of technology, you can access an array of platforms to learn and study which investments can yield high returns.
Along with establishing the importance of financial discipline, starting investment in real estate at an early age also teaches the difference between regular saving and property investment. Finance experts vouch ‘the earlier you start investing in real estate, the richer you get, majorly because one gets the advantage of time.
A noteworthy fact is that early investments in property lead to compounding returns because the time value of money increases over a period of time. Consistent investments in soft launches from a young age can yield huge benefits by the time of retirement for any individual. Furthermore, investment in commercial or even residential properties from the initial stage of a professional career facilitates an early entry into the world of finance and investment.
As soon as an individual initiates investing, they also start managing cash flow and money, thus instilling a sense of accountability in themself.
By starting to invest at an early phase of life and career, an individual acquires ample time to explore, absorb, and accomplish. There is also a greater scope of making mistakes because its impact would be negligible and the investor will have time and strength to redo it without hampering much in life.
Also, various researches highlight that young investors possess higher risk-taking abilities than their older counterparts. As age increases people become more conservative about spending money and desire stability, in turn evading high-risk investment avenues.
Another factor strengthening the viability of early investment in a property is that ‘the younger you are, the easier it becomes for you to avail loan’. If an individual is at an early age, he will obviously have more time to pay off the loans, lending him a benefit over someone who begins investing late in his life. This time frame also makes one fit for extended loan repayment periods that come at low-interest rates.
It is quite evident that starting real estate investment from a young age increases the probability of reaching financial stability sooner than your peers. There are several digital influencers in the real estate world who have built considerable real estate assets at a very early age. This gives a glimpse of an improved economy and good income sources that have provided the youngsters an opportunity to invest in properties at a very young age contrary to what happened with previous generations.
Thus, starting real estate investment at a young age will not only reinforce your financial independence at present but will also ascertain a secure future and an early retirement. And god knows, “who doesn’t want that?”.
