There is no overstating the fact that a properly managed property portfolio is one of the surest pathways to wealth. Unfortunately, the stereotypes surrounding property investments and of course the attendant challenges mean that millennials are ignoring the market. Millennials are more likely to invest into tech startups (which have a poor success rate) than property.Â This piece takes a look at some clever ways to get into the property market as a millennial.
You are unlikely to meet your milestone if you take your property investment funding needs to Kickstarter and other typical crowd funding platforms but there are quite a few property related ones available today. A quick search will reveal them. Review as many of them as possible and find those that have plans that make the sense to you investment wise. With some of them, you can get into property investment with as little as Â£1000.
This is a form of crowd funding but only with family and friends.Â You can pool resources with your siblings or friends who have tangible amounts saved up but do not want to shoulder the risks of property investments alone. Management complexities and profits are then shared as agreed.
Sweat for Equity
There are many older property investors or would-be property investors that are looking for younger people to manage their investments. Taking over rent collection and general maintenance can land you a sizable percentage of their equity.
Buy Instead of Renting
In some parts of the UK, the cost of renting a property monthly could offset monthly mortgage payments in other locations. This means that with your house rent currently, you can afford mortgage on your own home if you live elsewhere. In some cases, you wonâ€™t have to move too far away from your current postcode. So if you can afford property down payments, start searching right away for mortgage deals.
Buy a Small Rental Property
Buying a rental property is a great way to start your property portfolio. Not only does it give you the chance of a residual income for as long as you want, you have a property that can be sold for sizeable profits in future. It is important to note though, that your success in rental property hinges heavily on steps taken in the early days. You need to have the right tools for first time buyers to avoid a financially crippling mistake.
Invest in Tenants
This is another smart way to make money from property. Managing a database of properly vetted prospective tenants and even linking them to landlords is a great way to get some returns from the property market.
Invest through a fund
This is like buying a property stock. You get specific allocations as profit each year as long as the property remains profitable. Real estate investment trusts (REITs), Property investment trusts and Insurance company property funds are just some examples.
With these tips, millennials can invest in property smartly.
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