If you make smart investments when you’re in your 20s, you can set yourself up for a much better financial life. Real estate is one of the best things you can put your money into. People in their 20s are told to try to get a foot on the property ladder as soon as they can. Why? Well, check out these three amazing reasons:
Don’t Waste Your Money
When you’re young, a house is a great way to spend your money. Yes, you will need a mortgage, which means making payments every month for years. But it’s much better to do this than to pay rent to a landlord for years.
What does rent get you? Hardly anything, just a roof you don’t own over your head. You don’t have any say over the property; you can’t even change the way it looks without permission. When you invest in real estate, you might end up with a house that you own and are in charge of. So, even though money is spent on mortgage payments, it’s not wasted because it goes toward something very valuable. Have a look at some real estate tips if you need more convincing.
Make An Investment That Will Make Money
Some investments are better than others in terms of safety. Putting thousands of dollars into the stock market could be a good or bad idea. There’s a chance that the stocks you buy will go down, which means you’ll lose a lot of money.
On the other hand, the value of a property will almost always go up. The long-term trend of history shows that house prices go up. If you buy a house when you’re in your 20s, you can sell it when you’re in your 40s, 50s, or when you retire and make a lot of money.
You Have Full Control Of The Investment
As the last point shows, you can buy a house, live in it for years, and still make money on it if you keep it in good shape. But one of the best parts about climbing the property ladder is that you can decide how much your investment is worth.
You can’t legally do anything to change how much shares cost on the stock market. There are many things you can do to make your home more valuable. In a couple of months, you can increase the value of your home by making a few changes and then selling it for a profit. Or, you can make changes over time so that when you go to sell it, it’s worth a lot more. You are in charge either way.
Basically, the best investment you can make in your 20s is in real estate. You need to remember you are committing to long-term borrowing, but it could be worth it.
If you’d rather buy the house outright, the best thing you can do is save up for a mortgage. You’ll need enough money for a down payment, and you’ll need to make sure your credit is good enough to qualify for a mortgage.
Getting your foot on the property ladder is a great idea, no matter how you do it. Try to do it as soon as you can.
This is a collaborative post.