3 Reasons to Get Your Foot on the Property Ladder in Your 20S
Making smart investments in your twenties can set you up for a much more financially rewarding life. Of all the investments you can make, real estate is up there as the best. Everyone in their twenties is encouraged to try and get their foot on the property ladder whenever possible. Why? Well, take a look at these three incredible reasons:
Avoid throwing money down the drain
Buying a house is a fantastic way to spend your money when you’re young. Yes, you will need a mortgage, which means years of monthly payments. However, it’s much better to do this than spend years paying rent to a landlord.
What does rent get you? Nothing, just a roof over your head that you don’t own. You have no control over the property – you can’t even redecorate it without asking for permission. Investing in real estate can mean you own a house that you are in control of. So, while money is spent on mortgage payments, it’s for something incredibly valuable and isn’t a waste.
Gain an investment that will grow in value
Some investments are more secure than others. Spending thousands of dollars on the stock market could lead to positive or negative outcomes. There’s a chance that the shares you buy will hit a downward trend, meaning you lose loads of money.
Contrastingly, properties will almost always increase in value. History dictates that house prices increase in the long term. Get your foot on the property ladder in your twenties, and you can sell your house for a hefty profit in your forties, fifties, or when you retire.
You have direct control over the investment’s value
The above point shows that you can invest in a house, live in it for years, and still sell it for a profit – as long as it’s well-maintained. But, one of the best things about the property ladder is that you have control over the value of your investment.
You can’t do anything to legally influence the cost of shares on the stock market. You can do lots of things to increase the value of your property. With a few improvements, you can boost the value of your home in a couple of months, selling it for profit. Or, you can make improvements over time, so the resale value is way higher in a few years! Either way, you are in control.
Basically, real estate is the best investment you can make in your twenties. The question is, how do you get involved? As these DiversyFund reviews show, you can actually get your foot on the ladder without having access to lots of money. For a few hundred dollars, you can join crowdfunding for real estate that lets you earn shares in commercial properties. Thus, you earn money on the investment over the years, benefitting from the real estate market.
If you’d rather buy the property directly, your best bet is to save for a mortgage. You’ll need enough cash to afford a downpayment on a home, and you need to ensure your credit rating is good enough to get a mortgage.
No matter which approach you take, getting your foot on the property ladder is a genius idea – try to get there as soon as possible.