Are You Too Young To Invest In Real Estate?
Real estate can seem like an impossible feat for many younger entrepreneurs and prospective investors. With Toronto’s skyrocketing prices, the average age of first time home buyers reaching 36, lack of housing supply and stringent requirements on mortgage applications, things may seem grim. But it’s not all doom and gloom. There’s so many opportunities available even if you are younger than the average real estate investor. In fact, there are plenty of reasons to argue that you should invest as young as possible. Here are some reasons why it’s never too early to invest in real estate.
You Have Flexibility
When you’re younger, you have a lot more flexibility in your life. It’s much easier to move around and make big life changes. You’re less likely to have children, a spouse, and existing commitments that require you to make accommodations before making a big decision. Investing in real estate can require a lot of time and effort. Whether you’re looking for a good deal, educating yourself on the market, or planning renovations, you need to have time and the ability to seize and opportunity the moment it happens. If you don’t have flexibility, it can be difficult to maximize your investment.
It’s Easier To Be A Risk Taker
Being younger usually means you are more likely to take risks. This is no exception when it comes to real estate. As you are less likely to have children and existing commitments, there is often less to consider when assessing an investment. It means you open yourself up to a lot of opportunities that you may not otherwise see.
You Have An Openness That Many Lose As They Age
When you’re younger, it can be easier to try something different. Perhaps living with roommates or friends is more appealing for you when you’re younger. When you are older and have more commitments such as children or a spouse, the idea of moving in with a bunch of friends isn’t as appealing. Additionally, you have to consider the needs of your children and spouses. You can’t just live in a single bedroom with little to no amenities.
The Best Time To Build Equity Is Now
There’s no better time to build equity than now. The sooner you start, the more value and equity you build. It also opens you up to more opportunities in the future. Equity doesn’t build if you’re renting someone else’s property. Time will compound your investment benefits. The earlier you start, the longer it has to build value.
That Doesn’t Mean Everything Is Going To Be Easier
Real talk. When you’re younger, you’re less likely to have a lot of disposable income to invest. This can make things difficult especially when getting your down payment ready. Your credit isn’t going to be impressive either. But this doesn’t mean it’s impossible. Real estate isn’t easy whether you’re young or old but it’s a great opportunity for you if you have the drive.
The sooner you start, the more value and opportunities you can build up. You can build and create a lifestyle on your investments. Perhaps you want to retire earlier or build up your investment portfolio. Whatever the reason, starting young can pay off. Contact a Fridman agent today to find out more!