How to Invest in Real Estate at an Early Age

HDFC Bank

Moreover, with the emergence of REITs (Real Estate Investment Trusts), you can build an investment portfolio with lucrative real-estate projects, mutual-funds style. The investors’ money is pooled in and then invested in these projects. With REITs, one can expect commendable returns in the longer run.

So, you have the capital and the attitude. You just need some guidance. So, first things first,

Find Your Mentor

It could be a realtor or a real estate agent that you befriend. Or a friend/relative in the family who has had immense experience buying & selling real-estate. They can give you a pragmatic view of the market scenario, give you fair listings and even help you avoid any mistakes or pitfalls along the way.

Give them an honest picture of what your financial goals and your budget, and they will guide you accordingly. With an experienced person, you’ll take calculated steps and be more assertive.

Do Independent Research

While having a mentor greatly helps, it is highly essential that you do some research of your own. Understand how the market works; the hierarchy, the various home loan providers, the dynamics, the inner workings, the policies, tax structures, etc. And, always keep studying the social-economic climate to invest at the right time. Start following influencers, and subscribe to news, trends, and forums that provide you with the latest updates.

Consider Your Loan Options

Since you’re getting into the game early on, you might want to opt for co-borrowing. You can share the costs and risks involved with other investors who have similar financial goals. Be it brokerage, maintenance or legal charges, all of you can equally partake in the expenditure and profits. Secondly, keep an eye on the competitive interest rates on home loans in the market. Look for other additional features that can help lower your EMI.

Have Discipline & Foresight

Remember that you’re making a huge commitment here. You can’t exhaust your savings unnecessarily. In fact, we hope you’re already saving up and cutting corners as much as you can. Get a financial planner to help you chart out a pipeline that accumulates regular savings. A record like that might help you get instant Home Loan Approvals. Additionally, have a contingency in place in case there are hassles with your monthly income. A savings nest you can land upon if trouble arises.

Keep It Long-Term

Know that this isn’t the market to make some quick money. There are no instant returns, therefore you’re in it for the long haul to see some capital growth. Same goes for REITs too. You must let your portfolio go through the highs and lows of the market climate. Don’t be quick to pull out if the prices drop down, seek advice, compare and decide.

Maybe some of you are starting this journey with your parents. But not long after, it’s just you. So, you better start equipping yourself today!

At Loanz, we would like to go on this financial journey with you