Investing in property from a young age
August 24th, 2022
Becoming a landlord in your 20s
As a 28 year old with a new baby, developing a property portfolio wasn’t really high up on my agenda but with inflation increasing and savings interest rates remaining around 1%, it doesn’t take a genius to work out that saving money in a bank account is not the answer. I needed to get my money (what little I had) to work for me.
I have just bought my first rental property with a lot of help from David Adams. I went in with my eyes fully open, working out the pros and cons, potential yield and future demand.
I knew I couldn’t manage the property as well as a full time job so factoring in the cost of full property management was essential. It worked out to be the cost of my daily coffee (easy swap for a stress free life).
The result is that I now have a rental property that pays for itself and the property management, as well as covering a fair bit of my own mortgage.
I am now on the look out for the next rental opportunity.
Cavendish Top Tips for Property investment in your 20s
No. 1: Grow Your Knowledge
it’s important that you take the time to understand the basics of property investment, before deciding to invest.
No. 2: Be aware of the risks
it’s easy to get carried away by considering only the benefits of the investment. However, it’s just as important to be aware of the risks, like finding the right tenant, property prices and tying your money up
No. 3: Research The Right Location Investment
Picking the right location is key to attracting the right tenants and earning a high return on your investment.
No. 4: Be Sensible With Your First Investment
Stick to a sensible budget. Work out the worse case scenarion, consider demand, the area, property value etc. We are always happy to advise and will come with you to view properties offering our expertise.
No. 5: Consider Property Management
With a full time job, managing a property, ensuring you meet legislation and ever changing regulations and answering tenant’s queries and issues can be demanding. Full property management can be a business cost that you factor in and is tax deductible. That’s where we come in and it can be a lot less than you think.
