When Should We Start Investing?

Aug 14, 2019
When Should We Start Investing?
When Should We Start Investing?
Aug 14, 2019

You can start investing at any age!

Of course this answer depends on several things, and what kind of investments but the earlier you start, the more time you have for your initial investments to grow, and learn the process as well.  One thing to remember for any type of investment - educate yourself because the greatest barrier isn’t money, it’s knowledge!

If done correctly, real estate is one of the most popular and profitable investments with a lot of potential for success. Especially in this day and age - there are more real estate investment options out there.

We all have some knowledge about houses and at least witnessed someone selling their home. This is very important, as I don’t recommend people to invest in something they don’t understand. There is always someone around you who is investing in property  professionally or semi-professionally. There is always someone whom you can consult, and the internet is filled with great advice from investors

But, before investing - it's important that you first understand what your investment objectives are.  As if you’re investing in a stock, you need to consider your objectives - same goes for real estate. The first thing is to ask yourself is whether this investment is going to be long-term vs. short-term. Is it short term; making money and moving on or long term; part of a growing portfolio? Once you’ve answered this question, you are good to start.

We had an interesting read of a blog on how someone started investing at the age of 22. Their advice as a millenial or a middle class person is to straighten out your personal finances, before you invest in real estate. You need to acquire sufficient capital to make a down payment on the property - this should be part of your preparation process. You should ideally prepare enough to make a 20% down payment!

So if we sum up the first few steps - Gain knowledge and get advice from professionals, know what your objectives are, ask about all the requirements and build your savings for this whole process!

What are the benefits? We have found several shared by experts when it comes to investing into real estate, and we picked the top 5:

1. Generating passive income - By investing in real estate  - you don’t need to spend your time 24/7 to manage it. Properties generate income and cover your expenses while giving you the freedom to do what you enjoy

2. Cash flow for retirement - By having income from your rental properties, you could build up some ongoing cash for yourself for your retirement fund

3. Indulge in your entrepreneurial spirit - this is a learning process that will teach you a lot. You will manage a property, and learn some entrepreneurial skills while making money at the same time

4. Owning a property generates wealth -  Investing in real estate can generate wealth through appreciation, building equity, and hedging against inflation.

5. Potential for a high rate of return -  Depending on the location of your income-producing property, or other factors as well - your rate of return can increase!  This is much better compared to bank accounts, bonds, and even dividend-paying stocks.

 

 

 

 

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