How to invest in property for young millennial

Generation Y or also widely known as the millennial, usually born within the year 1981 and 1996, most of them are considering to buy or invest in property. Investing or buying properties could be tedious and troublesome due to the lengthy processes and paperwork but it could be even challenging for millennial as it requires strong holding power in terms of financial and time. It doesn’t matter if you are purchasing a landed or condominium for your own stay or investment purpose, if you do not have the stable finance and strong holding power, it could impose as a burden to you for owning it.

One thing that is benefiting millennial from owning property is time as they can wait for the property value to elevate till it is profitable. The main advantage of property investment is to increase financial leverage. Most property values increase on yearly basis which sided the millennial if they invest at a younger age. Young investors in their 20s are most likely to be able to maximise capital appreciation as they allow price to appreciate for longer period compared to the investment made by a person nearing at their retirement age.

Investor’s age plays a role to determine the level of risk they are willing to take whereby the younger the investor is the more they are willing to take the risk. On the other hand, investors who are nearing to their retirement age, the type of investment they would prefer to invest are those low risk or risk-free investments, unless they are seasoned investors. It is possible to invest at a young age but it is not an easy decision to make, with the right mind set and planning, it is the best age to begin with.

After all, investing in property also means increasing wealth and net worth, to increase wealth, you’ll need to increase the number of assets that you have on hand. When you have paid in full and managed well, the investment will remain an asset, while providing passive income on monthly basis and capital appreciation. This asset can be passed down to the next generation if it can be kept for longer time.

For millennial to be successful in their investment, there are certain things they will need to do:

Be knowledgeable: Keeping abreast with technology is what Gen-Y is good at and with the benefits of online courses and apps, financial and educational property websites, blogs and social media that provides vast knowledge and valuable guidance. Most importantly, getting your research done and right knowledge foundation before venturing into property investments. Read up some books relating to financial and investment gurus or attend talks and forums to obtain invaluable insights from experts and professionals. Learn from their mistakes and avoid falling into pitfalls of those bad property investments.

Shared investment: Sharing investment with who has the same passion and same goals is a good move. Youngsters mostly feared the amount needed to fork out for their first property, which usually is 10% of the property value.  Although, sharing investment will ease the burden and make investing more confident but young investors have to be aware of managing risks.

Income generator: Some young adults are considering investing in property to generate passive income by renting out their property. Apart from getting rental income, they are still able to see their property value to increase.

Risk controlling: Millennial should consider investing at a younger age and since that is the best time to acquire property and make the most out of their money and youth. For initial investments, choosing an affordable property and always have a plan B for emergencies. Another tip for budding investors, start with lower-priced properties and continuously level up as you invest. As you start from small, you will be able to learn to manage risk and financial management along the way.

Location! Location! Location!: The famous phrase has proven the success of property investment which is the location. It is essential to choose the right property with strategic location to invest that will grow value and attract potential tenants or next buyers. You will be surprise how a property located next to Mass Rapid Train (MRT) station can fetch higher price or rental rate compared to a property that has no MRT station. Before you decided on your investment, it is best to evaluate the surrounding areas, upcoming infrastructures, nearest amenities and others as well.