A younger person shouldn’t find investing in property daunting. As well as giving some great benefits, we also believe investing in property is easier to understand than other forms of investment, which makes it a very attractive option for those who are planning their financial future.

A common misconception for young people is they have to own their home before owning an investment property. This is a myth. We manage property for many young investors in the Newcastle area who have taken the plunge into property investment. Many of them continue to live in rented accommodation or live at home with parents, while reaping the benefits of their property investment.

For a young person, investing in a property can bring you closer to realising your financial dreams, whether it is owning your own home, having an income other than employment or having an investment portfolio to give you financial freedom in the future.

Like any business venture, the key to it is careful planning and making sound decisions. Here are some tips to help you on your way.

Take Your Time and Do Your Research

Spend time learning about investing and buying strategies. There are lots of reputable resources and good online forums where you learn the ins and outs of property investing. Familiarise yourself with property lingo, property prices, land tax and other charges so you won’t be caught out by unexpected costs.

Speak to The Experts

Speak to financial experts such as reputable accountants, mortgage brokers, financial advisors and your bank, and don’t be afraid of asking lots of questions. You want to know the potential pit falls as well as the positive points so you can make informed decisions when working out your budget, choosing a loan and determining your financial set up.

Raising the Finance

Start by making a budget and saving early for that deposit by making regular payments into a high interest savings account. There are other options if you haven’t got a 10% deposit such as using a family guarantor or consider joint ownership. Once again, you will need to fully research these options and make sure contracts and agreements are properly drawn up to avoid any misunderstandings. If you are entering into a joint agreement, remember you are potentially liable if the partner falls into debt.

Look Beyond the Popular Suburbs

We have already highlighted in another article that if a property has the right attributes it will be rentable. Think outside the box; there are plenty of cheaper properties in less popular suburbs with the potential of being good investment properties.

Be Proactive

Have yourself registered on the main real estate web portals, so when you see a property hit the market that interests you and it is priced right, you can act straight away before it is sold. It is normal for the best buys usually sell within a day or 2 of coming onto the market.

Minimise Your Risk

Always plan for the worst case scenario. Make sure you have the right insurance and always try to have some extra set aside for unexpected repairs or time when the property is empty.

Managing Your Investment

Consider using a property management company to find tenants, manage maintenance and monitor your property. Furthermore, there are other benefits too, such as tax deductions. That way, you can get on with reaping the benefits and living your life while someone else deals with any stresses.

Although the media continues to report an ongoing growth in property values, we still have record low interest rates and there are lots of people wanting to rent in our area.

Whatever age you are, if you would like to know more about property investment or property management, our knowledgeable and experienced team would love to help. With over 40 years of business in the area, we are one of Newcastle’s longest established real estate offices, so give us a call on 02 4954 8833 or pop into our Cardiff office for a chat.