Most of us dream of being rich, but the older we get, the further away that dream can become. Our 20s and 30s are often the peak times for ambition and planning for the future – so harness that energy and make those dreams a reality!
Making money is well known to be a long game, so the sooner you start, the better things will go. While you can build a tidy nest egg over time by putting money away in a savings account or ISA, many young people today are driving better profits by investing in property.
Here are a few tips and tricks to get you started:
Save, save, save
One of the big ironies of life is that you can’t get rich without having some money. To get on the property ladder you’re going to need a mortgage deposit of at least a few thousand pounds. Your parents or other relatives might help with this; you could club together with friends; some people even manage to crowdsource their first property.
There are two main ways to make money from property. The first is to refurbish. This is where you buy a property at the cheaper end of the market that needs a lot of work. Flats or houses that are very outdated in style are hard to sell and therefore lower priced – but if you choose wisely they can rapidly be improved with some good quality redecorating. The property can then be resold at a higher price.
A fast way to build some cash, it’s also fairly risky, as you need to make sure that the price you sell for will cover all your expenses. That includes the legal costs of buying the property, redecoration costs, mortgage payments and selling fees.
Buy to let
The second approach is to buy a property that you then let to tenants, which provides you with a monthly income. It’s an appealing way to invest as the tenants are essentially paying your mortgage for you, and often you can make a little profit on the top.
Things to be aware of are that you need a Buy-to-Let mortgage, and some lenders may have age restrictions. But not all of them do, so as long as you have a suitable deposit you should be able to get funding.
There are also lots of legal responsibilities and requirements that apply when letting a property, so do your homework, or speak to a lettings agency like us for help and assistance.
Research the market
Whichever route you decide to pursue, it’s important to get the appeal of the property right. If you’re selling, you need to sell fast to avoid paying too many mortgage payments and depleting your profits. If you’re letting, you need to get tenants fast to start covering your costs.
The property, therefore, needs to have a lot of good points. Think about who your target buyer or tenant is and what their needs will be. Students will want easy access to Uni or college, whether it’s on foot or by public transport, whereas young professionals might want a parking space and a supermarket nearby.
Believe in yourself
It can seem daunting and at times impossible – but the same is true with most dreams. If you want something badly enough, you will make it happen. Hang in there, and good luck!