Home Finance Reasons why you should invest in real estate at a young age

Reasons why you should invest in real estate at a young age

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Real estate

Have you considered making investments, real investments or are you that person that still think fixed savings and buying shares are still good investments? Investing in real estate may your smartest investment you have ever made in your life. Real estate have produced one of the richest individuals in the world such as Robert Kiyosaki, Cyril Ramaphosa among many.

Why would one start investing in real estate when they don’t even understand what it is. According to a definition by the Wiki, Real estate is “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general

This should not confuse you as a beginner, owning a property and staying in it, is really not smart investments. However owning a real estate and renting it out, that is real good investing. Remember your property will always remain a liability if you still spend more than what you get from the property itself. Please don’t wait until you get older, the sooner you start with the investments, the better chance you have for your early retirement.

Why real estate is your smartest investment?

Firstly in order to purchase any land or property nowadays is very expensive. But if you are permanently employed, earning good salary, minimum of R17 000 per month, you can apply for a bond or home loan to finance your real estate. The following are the main benefits a real estate will give you in the long run:

Basic Rental – there are many people in the country that don’t have enough money or qualify for a bond but still would love to stay in a good house. This right here is your opportunity to improve your monthly cashflow by renting your property, even if you’re still paying for it. You will charge more than what you pay. The tenant will help you quickly payout your bond and give you monthly profit in the long run.

Feeling pride of ownership – as time goes, you will obviously be having more than one property. Real estate will give you the confidence and a really good feeling of pride of ownership. At this stage, you will be in real wealth.

Asset value appreciation – this is a very interesting part about real estate. If you purchase your property today for R550 000, overtime you real estate will accumulate value. Unlike vehicles, properties are sold at the higher price more than the original purchase price. So you will sell your estate for a million depending on the evaluation and improvements and maintenance of the property.

Real estate investment advise

If you’re blessed with opportunities of owning a business or even a high paying job, please do not post-pone planning your investment program. Remember no one ever became rich or wealthy overnight, it takes time, like a program and it needs proper planning. Do your financial analysis at your young age, get a financial advisor if possible to guide you through, be realistic about your finances.

To learn more about real estate investments, best strategies with regards to your financial planning, please follow Robert Kiyosaki on youtube, buy his book ‘Rich Dad Poor Dad‘. Also just head on to Google and find out more detailed information that works for you but remember real estate is real, it works.

NB: Visit our loan calculator page here