Just 40 percent of Australian millennials have ever owned property, according to CoreLogic. Among these, however, are a handful of super-motivated young people already trying their hand at investing.
While it’s a great idea to begin building your portfolio early, we understand it can also be a bit overwhelming. That’s why we’ve come up with three key tips for young property investors:
1. Seek out expert advice
At any age, qualified advice is key to a successful investment strategy. To ensure you make the most suitable choices, actively seek out insights from:
- Your property manager,
- Mortgage brokers,
- Experienced investors.
Together, these people can help you craft an investment strategy, understand your borrowing capacity and identify great opportunities.
2. You don’t need to know everything about investing
That said, you don’t have to know everything about property investing – you simply need a comprehensive understanding of the real estate you own or are looking at buying.
Remember: everyone starts somewhere. Ask the relevant questions and do your own research, but don’t become overwhelmed by trying to learn too much at once.
3. Budget for contingencies
While Canberra property tends to be a fairly stable investment, there is always a level of risk associated.
Experienced investors have learned how to plan for things like rental arrears or major damages that could affect your income-producing asset. As a new investor, it’s essential you always have enough funds to deal with repayments and expenses. Think critically about your budget, begin saving early and make sure you start small in terms of borrowing.