By Elizabeth Farrel – Content Resource from wealthawareness.com.au
No one has ever become a millionaire within a few years by simply funneling his or her excess income into a savings account. Unless you are expecting a hefty inheritance or you have a lucrative business, your next best alternative would be to invest your money. And if you happen to look at the portfolios of the most successful people, one of the first things you’ll notice is that a good majority of them have invested a great deal on properties.
“But I’m too young,” you might say. Of course, there are several things that may go against you. There’s your age and your inexperience. You’re probably just starting to build up your savings and, you may have poor credit. Most likely, you’re just keen on hanging out with friends or, if you’re already hitched, working hard to provide for your spouse and kids. On top of that, there is a considerable dearth of people of the same age who are interested in investing.
But beyond these, you’ve got several things going your way. First, you are still motivated and can dream up big things. With so much to experience, you simply don’t let minor mishaps hold you back. When you’re a little bit older, you can get a little jaded and settle for what is easy and comfortable. Second, there are various tools and technologies that you can use to start learning about property investments. You can leverage forums, websites and even social media to soak up all the knowledge you will need. Finally, you’ve got time on your side.
According to JDL Strategies, there are two basic ways to earn from property investments. The first way is to buy a property and rent it out to tenants. The second way is to purchase a property, make some improvements to help increase its value, and when the time and market conditions are right and to your advantage, sell or flip it at a higher value.
These may all sound a bit too heady if you are a novice property investor. For young investors, two of the best properties to purchase are the live-in flip and small multi-family properties. When you’re just starting out as an adult, you’re most likely looking for the cheapest things that you can afford. The same thing applies with the live-in flip. Basically, you’re purchasing a property that will double as your place of residence and as an investment. After making the necessary renovations and improvements, you can then flip that property.
A multi-family property (a duplex, for example) is perfect if you want a place to stay and want to earn from rental income. With a duplex, you can live in one portion and let out the other. The rental side will allow you to cover your expenses including payments towards the property.