Real Estate Investing: At What Age Should You Do It?

Real Estate Investing: At What Age Should You Do It?

Are you wondering at what age you should start investing in real estate? We have a definitive answer for you.

Yesterday.

The truth is, it is never too soon for you to start investing in real estate. In fact, investing in real estate young has many advantages!

Whether as a primary profession or as a sideline, becoming a real estate investor offers not just financial benefits, but also a lot of lessons that can help you in any career. Becoming a real estate investor is not just for those who have reached middle age – young adults can do it too!

 

Young Real Estate Investors – What Advantages They Have

There are two main ways to make money in the real estate industry: through rental income and through passive profits.

Rental income is the chief source of cash flow for any real estate property business. You cannot succeed without this source of income; however, it is only part of the equation.

The second way to earn money in real estate is also important. You can also earn money by increasing the equity value of your property over time, at a higher rate than inflation. This is also known as “passive profits”. If left alone, most properties will not beat inflation – only through your hard work building equity by improving and maintaining the property in a good neighborhood will your holdings gain value. The improvements to your property and the improvements to the neighborhood can only happen over the years. To capitalize on this, you need to start investing in real estate early.

By investing in real estate early, you are likely going to have more stamina, energy, and risk tolerance to make smarter investments.

 

What to Know Before You Start Investing

Before you start investing, here are some tips to keep in mind:Before you start investing, here are some tips to keep in mind:

  • Carefully evaluate which property (or properties) you want to invest in.
  • Understand the different ways to profit from real estate investment.
  • Remember – location, location, location. When it comes to real estate, location always matters.
  • Understand the tax benefits.
  • Remember the 1% rule – an income-producing property must produce 1% of the price that you pay for it every month.

 

So… At What Age Should You Start Investing?

To start investing, you need to be old enough to legally get a bank loan to finance an investment property – that’s 18-21 years old or a bit older in some areas. Apart from this reasonable barrier, investing in real estate is restriction-free in terms of age.
If you have been considering it, start investing in real estate now. Don’t wait for the perfect “market condition” as this can only waste your time.

If you want to know what your options are when it comes to real estate investing, don’t hesitate to reach out to IRL Properties.

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