Good Reasons to Start Investing at A Young Age – 2

When it comes to investing in property for the first time, you may feel like you’re in over your head.

Lacking disposable income and investment know-how, your chances of surviving the property market as you compete with cashed-up investors may seem slim.

However, here are some reasons I would suggest you consider investing from a young age:

Financial benefits

Some of the main financial benefits of investing in property from a young age include:

  • Maximise cash flow: One of the objectives of property investing is to increase cash flow, or the money left over each month after expenses have been accounted for. Generally, cash flow will increase over time as rent increases, while your repayments will largely remain the same, and the mortgage will be paid off as you gain equity in the property.
  • Appreciation: The longer you own an investment, the more it will appreciate in value.
  • Diversify your portfolio: Over time, you can buy several investment properties to build your wealth.
    The sooner you buy your first income-producing asset, the sooner you can diversify your portfolio and buy other investment properties.
  • Negative gearing and depreciation: Many young people are using investment properties as a stepping stone, as it may be cheaper to own a rental property than a home.
    The repayments are subsidised by the rent and you end up getting various tax benefits such as depreciation and negative gearing.”

RealRenta has all the tools that a property manager has, but less than ¼the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Wednesday, 10 November 2021

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