Investing in Real Estate in Your 20s: Possible or not?
Investing in real estate in your early 20s? What? That’s insane!
This may sound a little absurd, but investing and making money in real estate in your 20s is not only possible but also one of the wisest decisions you can make for your financial future. In fact, most real estate investors often wish they could have started earlier.
Most young people would also agree that the idea of investing during this time may seem not realistic (if not impossible). Youth at their 20s view real estate investments as something that should be undertaken only when they’re older. Life on this stage should be about finding a good job, building a career, having fun and definitely not about ending it. Plus given the circumstances that the world is going through this year, is it still good to invest in real estate for young people.
Here’s Why You Should Start Real Estate Investing in Your 20s
First of all, you’re never too young (or old) to invest. The fact is, investing early helps you build an early safety net. It appears prudent now to have multiple streams of passive income that can be of assistance in times when things aren’t so clear. Second, starting early allows you to have more time to build your wealth. It gives you more time to learn, grow, and navigate through the waves of real estate investment. And third, investing in real estate is actually not about making money alone. You will also learn other life skills which will be very helpful to you throughout your life.
How to Start Property Investing in Your 20s [Filipino Homes]
Many newbie real estate investors get overexcited and try to shoot for the stars on their first investment. It is important to start simple and small and gradually grow your real estate portfolio so that you don’t end up regretting and discouraging yourself.
Come up with a long-term plan
Developing a long-term plan for real estate is very important. Because having a vision is what keeps you from straying too far from a certain path. More importantly, you must be aware that you can’t reap the benefits of real estate investing by tomorrow. Time is your friend in real estate investing and it’s what paves the road to your future financial security.
Educate yourself through those who’ve done it
Sometimes, when you are young, your focus is often divided to do many things. But in order to be a successful property investor, you must learn to find the true value of what you’re doing by learning from the mistakes of expert real estate investors. Simply put, you can avoid mistakes at a fraction of the cost by doing so.
You can also enrol yourself at FIRE or the Filipinohomes Institute of Real Estate, a program created by Filipino Homes that aids in developing the skills and talents of a real estate practitioners through various online courses.
Learn to Save
Some investors would say don’t save money, the money you save will not work for you and your money will not increase in value from what you saved. Well, that’s partly true. But learning how to save is the foundation of all financial success especially in real estate investing. Life is uncertain, thus saving money is very important.
Pay your dues and be responsible with your credit
This is also a MUST for every investor. If you wish to take a start investing and you have a terrible credit score, chances are you’re going to get denied or compromised. To maintain a clean credit history, you need to be responsible with your bills and loans. Make sure to pay on time! OR maybe this time forward, try to motivate yourself to downgrade your lifestyle even if it means turning your back on some luxuries from time to time.
Networking is one of the most significant aspects of investing in real estate. Whether you are just starting out or already in business, knowing the right people is one trick in the book that you should definitely do. You can begin this journey by attending local events like workshops, seminars, and open house events to meet with agents, developers and other investors. With the technology we have nowadays, social media has also become one of the most convenient methods of networking.
Answer: Yes. Investing while you’re young can offer you big gains in the future.
Cliche as it may sound but, “The best time to buy a home is always five years ago.”
You may also check out the top real estate agents in the Philippines and get some professional real estate advice and direction.
Arnann Jay is a blogger of Filipino Homes and a Freelance Communications Officer, with experience in managing projects and campaigns focusing on education, peace, and digital literacy. He currently works from home and writes for his blog One Story at a Time.