Looking to get ahead in the financial game? Investing in real estate young can give you a solid head start.
However, investing in real estate doesn’t only require an investment in terms of money but time as well.
You need to find a property, get a loan, renovate it, and sell it – all of which takes time and diligent work. While it may seem challenging at such an early age, it isn’t impossible.
So, if you’re a millennial looking to tap into the property market, here are some tips on how to start investing in real estate.
Young investors who have their eye on property buying must keep up with the complex dynamics of the real estate market. Before you park your funds for the long term, subscribe to blogs, publications, online forums, and learn the fundamentals of property investment.
Keeping abreast with taxation, government policies, home loan interest rates, and property prices will allow you to remain steadfast in all the stages of real estate investment.
Additional Read: Check Out the Benefits of Taking a Home Loan in Your 20s
Develop a rigorous financial discipline
It’s never too early when it comes to saving, especially if you have your eyes on the property market. Engage with a financial planner to build a roadmap and give your savings some structure. As most lenders today need proof of regular savings as part of their home loan eligibilitycriteria, saving smartly can save you a lot of time, as your loans will be approved swiftly.
Also, if you have any ongoing loans, make sure to close them on, or preferably before the end of the tenure, as it will help you build a robust CIBIL score.
Expand your portfolio
Young investors are often advised by financial experts to diversify their portfolio. Including different asset classes – commercial, residential, and retail real estate – within your portfolio will allow you to diversify risk and protect yourself from market fluctuations.
It is a healthy practice to share your investment or home loan cost with other investors with financial goals similar to yours. With co-borrowers, you can share the loan amount, brokerage, stamp duty, and additional charges concerning renovation, repairs, or maintenance. It’s another excellent way to minimise your risks, since they will shared equally among stakeholders.
Plan for contingencies
Sometimes, your tenant may not deliver the rent on time, or the property construction may get delayed due to unfortunate circumstances. That’s why your financial plan must allow for such real estate-related contingencies. To tide over such crises, make sure you keep enough funds aside to meet your regular expenses.
Additional Read: Buying a House as an Investment for Future
Are you looking for a housing loan to fund your first property investment? If so, then you’re in the right place. Tata Capital offers custom loans with affordable home loan rates to allow young investors to close a lucrative deal.
We also have our very own home loan EMI calculator to help you with your financial planning. Apply for a home loan by visiting our website today!