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
However, here are some reasons I would suggest you consider
investing from a young age:
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.”
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Wednesday, 10 November 2021