Can you invest in property if you’re under 30?
Many people think about property investment as an option but don’t take the plunge. However, there is no reason why you can’t start young and invest in property way before you are thirty. There are a number of ways property investment can be affordable and practical for young people. It’s also a great way to invest in the future, allow you to think about retiring earlier or make it easier to buy your dream home.
In fact, investing in property when you are young can sometimes be a better option that trying to buy your first home. In the UK, the average deposit for first time buyers is £51,9052 and the average monthly mortgage payment is £723. Smart young investors can use the regional price variations in the UK to purchase a cheaper rental property with a far smaller deposit than in other areas. You could opt to invest in a property where monthly rental payments you receive from tenants are higher than the mortgage you are paying, even helping with housing costs in the place where you rent currently. In certain areas of the UK, you can purchase an entire property for less than the amount needed for the average UK deposit. Hamilton Hub, a development on the Wirral by RW Invest has luxury apartments that are available for just £45,450. With yields of 8%, these lucrative opportunities mean that getting on the property ladder can be easier than once thought.
If you invest in property when you’re under 30, you can also plan and strategize for future property investments. Many successful property investors have large portfolios, which span different cities, countries and property types. If that is where you are aiming to be, it’s worth starting early! By starting out with a low-cost property, with high yields and easily repayable mortgage payments, as soon as you have enough saved from rental yields, you can buy another property and enjoy cash flow from multiple sources. You also have the option of selling off a property when it is worth more and you need the funds.
Another reason that investing in buy to let property when you are younger is better is the amount of time you have for your property to appreciate in value. There are some shining examples of UK house prices rocketing, showing that over time, even just a decade, property investors really can make incredible profits. House prices in Stevenage grew from £181,475 to £287,692, a massive 58.5% increase from 2007 to 2017. In Hackney, property prices increased by an incredible 939% between 1995 and 2015 and in Lambeth, house prices rose by 760% from 1995-2005 and 120% from 2005-15. House price growth during the 90s was exceptional and the economic crash obviously affected house price growth in the 2005-2015 period, but there are still massive rises like in St Albans where house prices grew by 66% from 2005-15. It also means that since that period, house price recovery is fully in swing now, with some areas like Liverpool, experiencing a house price rise of almost 8% from August 2017-18.
One of the most important things a property investor can do is research, plan and evaluate different investment opportunities. This takes time, and the sooner you decide to start this process the better. By knowing what rental yields are, where prices are rising, how much the average property prices are and other property tips, you stand yourself in better stead for a successful journey in property investment. Honing your skills and starting to invest in property before you are 30 can lead to a prosperous and lucrative future.
Category: Finance
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