Is Investing In Real Estate At A Young Age A Good Decision?
|Real estate is often described as one of the safest investment options. Read on to find out if it is ideal for youngsters to invest in real estate|
The generation before millennials invested in real estate, not only for the returns that the asset generated, but also for safety and security reasons. Besides, it was one of the few bankable options available. However, despite several investment avenues that are available today, several youngsters aspire to buy property at a young age.
Even using the simple economic rule of demand and supply tells us how precious land is. The finite land resource will only get dearer as the population increases. Real estate is considered one of the safest and low-risk investments. Even if the prices dip a bit due to global factors, like recession or pandemic, the prices will surely bounce back in the long run. Unlike gold, equity, or other instruments, real estate is an asset, which you can use or rent out, and still generate long-term profits.
Additionally, real estate also helps you diversify and balance your investment portfolio.
Talking about finances, most opt for a home loan to buy a home. With age on their side, a young gun has the option of longer tenure with lower EMI, thus reducing their financial burden. As one grows old and climbs up the corporate ladder, the income also increases, thereby allowing them to make pre-payments or increase their EMI amount and manage their loan better.