Is it too late to invest in real estate?
Discover how to invest in real estate at any age! Learn the key factors for success, including financial stability, steady income, savings, and a solid strategy to achieve your property investment goals.
Investing in real estate is an exciting endeavour that knows no age limit. Whether you’re only at the start of your career or close to retirement, you can purchase investment properties regardless of age. The key factor to consider in a real estate investment is your current financial capabilities.
You need to be in good financial standing at whatever stage you are in your life if you want to pursue investing in real estate. This means having a steady income, savings, and good credit. As long as you have good financial standing and a sound investment strategy, you have a good chance at a successful investment property.
When is the best time to invest in real estate?
The ideal time to buy an investment property is when you can comfortably afford it. Real estate investment requires a lot of time, planning, and research. You need ample time to focus on your investment, as well as enough industry knowledge to avoid common pitfalls.
Without a good investment strategy, your property investment is unlikely to thrive. Because there’s so much that goes on in property investment, it may take time for aspiring investors to finally be ready to take the next steps.
Is it riskier to invest in real estate as you get older?
Investments will always have risks no matter how old you are when you make them. The risks are heavily affected by your financial situation and the current state of the real estate market.
For instance, if you have a good career with a steady income, taking on a real estate investment may carry less risk for you financially. On the other hand, if you’re close to retirement age and would be heavily relying on your savings and pension moving forward, then a bad property investment outcome could be detrimental to your financial situation.
To minimise risk to your finances, it’s best to get your financing sorted before investing in real estate. There are plenty of great investment loans out there with low rates and favourable loan features. For those who have a self managed super fund, you could look into buying an investment property using an SMSF investment property loan.
Real estate investment at different ages
Investing in real estate can be a different experience for people at various stages of life. Of course, there are advantages and disadvantages to investing earlier or later in life. It all depends on whether you can make your investments worthwhile.
Investing in real estate in your thirties (or younger)
An early start in real estate investment can give you better compounding returns. However, the most challenging part about property investment during this time is getting enough capital. A simple solution to this is by getting an investment loan, however, the funds you’re allowed to borrow may be limited, and you will still need to build up a deposit.
Investing in real estate in your forties
At this stage in life, you may be more financially stable than you were in your younger years. Ideally, you’ll have more disposable income to put towards property investments. This could put you in an advantageous position as you’re free to pick and choose properties that suit your investment goals best without being limited by a tight budget.
Investing in real estate in your fifties and beyond
Starting your real estate investment journey later in life comes with unique challenges. To ensure a successful property investment, having a sound strategy is a must. This means talking to lenders about your loan options which could include investing through your SMSF, and discussing your investment goals with investment property professionals to make sure you don’t waste time.
Tips for investing in real estate at any age
It’s never too late to purchase your first investment property. Before you start your investment journey, make sure you have the right tools in your arsenal. Here are some helpful tips to keep in mind when investing in real estate for the first time:
Create a good investment strategy
A sound investment strategy can help you go far when investing in real estate. First, figure out what you want out of your investment- i.e., a quick short-term profit or long-term passive income- and craft a plan around it. Having a clear financing goal helps you better focus your efforts.
A good investment plan will help streamline the investment process as you’ll be able to narrow down your options immediately. Your investment strategy serves as a guide when choosing the perfect property and suburb as well. You won’t have to spend weeks or months going through different houses and neighbourhoods.
Understand the cost of the property investment
Look beyond the purchase price of the investment property. When investing in real estate, you have to think about stamp duty, taxes, maintenance and renovation costs, and a myriad of other hidden costs. These additional fees can add up quickly so it’s best to include them in your budget so you’re not blindsided by the extra expense.
Find a good investment home loan
The loan you choose could make or break your investment. You need to find a loan that fits your financial needs and can help you achieve your investment goals. The ideal investment property loan would be one with low rates and flexible terms. Look carefully at the comparison rates to see the true cost of the loan which includes additional fees.
Talk to one of our friendly lending specialists today to find an investment loan that’s perfect for you! Check out our range of investment loans, or if you’re ready to start your real estate investment journey, apply online today!
Find out in under 2 minutes if you qualify for one of our low rate home loans.
About the article
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