Advice For Young Couples Who Invest Together
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While it might be easy to just jump in and invest as soon as you have the ability and resources, gaining strong returns from property investment require hard work, proper knowledge, commitment and good timing. Even experts in the field experience hiccups from time to time, so imagine how hard this can be for everyone else, especially younger people who are still in the process of settling down.
In an interview with Bryce Holdaway and Ben Kingsley, authors of a new book entitled Make Money Simple Again, Your Investment Property (YIP) narrowed down the discussion and focused on basic factors that need to be considered particularly by younger couples before they finally decide to pay down home loans to invest.
Holdaway and Kingsley suggested that general rules and basic knowledge must be kept in mind by anyone trying to invest.
First, the authors noted that it is important to organize your expenses, in order to increase their savings.
“Too often [younger couples] are tempted to ‘have now’, rather than ‘sacrificing now to enjoy later.’ If they can organize their money management to trap more surplus savings, they will build a good deposit and get on the property ladder before their friends do.”
It was also pointed out that changes to circumstances will impact cashflow and, ultimately, the ability to maintain the investment loan.
“Property is a long-term investment, not a short term speculation event. Ensuring you can hold the property both today and tomorrow will give you the best chance of climbing the property ladder,” the authors said.
More importantly, younger couples should acknowledge that not all properties perform the same. Being able to pick the best location, as well as an investment grade asset, rather than an investment stock asset, can make all the difference in the overall investment returns they will take home.
Lastly, Kingsley and Holloway emphasised the importance of conducting proper research about the market.
“Spending time on real estate portals just looking at nice property isn’t going to yield you a great return. Understanding what owner occupier appeal is and how demand and supply influences property values is a far better use of your precious time before making a purchasing decision,” they said.
If these points are successfully grasped by younger couples, Ben and Bryce believed that pleasant possibilities await them.
“There are amazing opportunities all over Australia currently, and in some cases they may not be in their own city. Investing is about getting a great long term return, so don’t be afraid to be a borderless investor,” they concluded.
Source: Your Investment Property Mag 8th November 2018 https://www.yourinvestmentpropertymag.com.au/news/advice-for-young-couples-who-invest-together-257262.aspx
This article provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such as it does not take into account your personal circumstances or needs. Professional advice should be sought prior to any action being taken in reliance on any of the information.