Investing in property can be a sensible plan for the future for young homeowners.
Property has become one of those ‘must have’ assets. It can provide you with somewhere to live. A buy-to-let property can generate an income for you through a healthy rental yield. Plus it is considered to be a safe investment choice, hence the common phrase, ‘as safe as houses’. The younger population are encouraged to get onto the property ladder as soon as they can to become a homeowner. But why is it important to start this investment at an early age?
1. To start paying off your own debt.
Renting property has its perks. It means that you are not tied down to a particular area. You have flexibility to move on. Plus if anything goes wrong in your rented home you do not have to pay to get it fixed. But the downside is that you are paying off your landlord’s mortgage rather than your own. The sooner you invest in property, the sooner you can start paying off your mortgage to become mortgage free.
2. Potential to provide you with an income.
Depending on your circumstances and the property that you choose, being a property owner gives you the opportunity to rent out an extra room to generate an income for you. Think carefully as to whether you want to share your home with another person as it is not always for everyone, but if you do this is one way to help pay of your mortgage or start a new savings pot for your next move. If you know that you want to rent out one of your rooms ahead of your purchase then speak with local real estate agents to determine what properties let well, for example if you have two bedrooms they should be of an equal size in order to appeal to two sharers.
3. Opportunity to start reinvesting.
Whether you are renting out your spare room or not, the sooner you start paying for the property, the quicker you can live mortgage free. This enables you a better chance to start accumulating savings to either upgrade your property or buy another. Those who start buying property earlier in life tend to move up the ladder quicker and make money with every move.
If you want to take advantage of becoming a homeowner at a young age take a look at Thailand Property’s comprehensive listings online here.
