When it comes to real estate investing, doing so at a young age is too often viewed as a liability. Sure, everyone has a lot to learn starting out. The beginning stages of considering an investment can seem daunting to anyone of any age. There’s an element of risk involved and that can be scary. The other side of the coin is that doing nothing or not investing has risks, too.
What many don’t stop and consider is that you, as a millennial, stand to gain the most from this kind of investment. Here are the top three reasons to start investing in real estate now.
Risks Are Easier When You're Younger
- Easier Recovery - Let’s say that something doesn’t work out exactly as you’d planned in an investment. Every investor experiences that from time to time. If that happens, you’ll have more time than anyone to recover from these setbacks compared to older investors. Older investors are worried about how a botched investment may affect their retirement. At your age, even in the worst-case scenario, you’ll need only to brush yourself off and try again.
- Less Responsibility - Especially starting out, risk taking is not such a big deal because you may not have a family, be tied down to a specific geographical area, or have as weighty expenses. Many choose to see this as a downside. You don’t need to do that. See this situation as a way to take leaps of faith with less risk to others or your finances.
- Quicker Trigger Pulling - Older investors tend to analyze everything to death before “Pulling the trigger” on a real estate investment. There’s nothing wrong with doing that. Everyone needs to closely analyze the details before buying a piece of real estate, but there comes a time to act. Younger investors are often quicker on the draw and that isn’t always a bad thing.
The Most Time To Reap Financial Benefits
- Long Term Investments - There’s no question that purchasing real estate can make you rich. The process isn’t a get-rich-quick scheme, though. To reach the maximum return on your investment, you’ll need time. Imagine that you want to create a privacy wall of trees on your property but you’ll be planting them as saplings. Would it make more sense to plant them when you’re in your 20s or 60s? In the same way, you’ll enjoy your investment over a longer period of time by starting early.
- More Financial Freedom - By investing early, you and your family will be more sheltered from job loss or financial downturns. Even if you lose your job, you’ll have money coming in from your real estate investment. And if you want, you’ll be able to eventually make real estate your full-time job. Eventually, your real estate will continue making money for you even when you’re not working.
- Earlier Retirement - Although retirement is likely the last thing on your mind right now, that won’t always be the case. By making early investments in real estate, you’ll increase your chances of an early and financially secure retirement. You and your family will have more time and resources to do more of what you enjoy.
- More to Pass On - You’ll also have something to pass on to your family when your life draws to a close. Your children and grandchildren will benefit many decades later from your gutsy decision to step out of your comfort zone and start investing. They’ll be more financially secure because you bothered to take the risk.
You'll Know More Than Most
- More Time to Learn - By investing earlier, you’ll become an uncommon expert in your field. By the time you’re in your forties or fifties, you’ll have a sixth sense to real estate investing that many others could only dream of. For decades, you’ll get better and better at investing and become increasingly successful.
- You’ll Be Able to Mentor Others - Even more valuable than the money you make will be the relationships you build over the years. You’ll be able to mentor dozens and possibly thousands through one-on-one encounters and media outlets. Many families will enjoy a better quality of life because of your investment in people.
Are you getting the itch to invest in real estate at a young age? Don’t let anyone throw water on your fire. You have one major thing going for you that all the money in the world can’t buy. You have the most time.