DI: In Your Twenties? Invest In Real Estate!

[Cole Simpson]

Daily Inquirer!

Why Rental Properties?

When it comes to investing, twenty-somethings should prioritize rental properties. Rental properties, in addition to being essentially inflation-proof, also improve in value over time. The longer you own a home, the more likely you are to profit from a future sale.

While property appreciation (the difference between the purchase and selling prices) is a fantastic reason to invest in rental properties, cash flow is one of the most important benefits. Having rental property raises the average monthly passive income you can earn.

Rental payments rise with inflation and cost of living rates, increasing cash flow over time.

Know Your Financing Options

Obtaining funding in your twenties is sometimes easier than doing it later in life. Unless you went insane in your youth, your debt-to-income ratio is probably lower than it would be later in life. If you wait another ten years, your credit is likely to have fewer blemishes and anomalies.

Take the Time to Find the Right Deal

Investing in real estate early in life provides you with an opportunity that you will not have later in life. You can devote time to researching the market and learning the ins and outs of the business. It also allows you to feel less stressed while making purchases because you aren't in a haste to retire. This means you can be picky—if something doesn't feel quite right, go away and keep looking.

Did you start in your 20s?