Benefits Of Investing In A Real Estate Property Early
There is an old adage; this adage explicitly states: “The best time to plant a tree was twenty years ago. The second best is now.” In matters of real estate investment, such an adage continues to ring true. When it comes to investments, although it may never be too late to make them, earlier is always better.
Is it worth it, though, to invest in real estate at an early age? It is a great option to still invest in the real estate market even with an entry-level salary because it is easier to get home loans. In addition, real estate investments can become your source of passive income.
You should also invest in real estate property early because of the following reasons:
Easier Home Loans
You’ll likely be working with a bank or financing provider to secure a home loan because most young people are not as blessed to have a lot of cash on hand, especially since real estate properties cost a bit of money.
Here in the Philippines, investing in a real estate opportunity at a young age means being able to pay a monthly mortgage quite well. This is helpful because when you’re young, you are at a time when you don’t have quite as many adult responsibilities, and therefore, you have more disposable cash on hand.
Secondly, another reason you should invest in a real estate property at a young age is that there are now affordable properties in the market. Young and early real estate buyers often come across the hurdle of high prices and costs; as a result, they often opt to postpone their investing to a later time. Although real estate property may not be as affordable, making early real estate investments is possible.
Passive Cash Flow
Furthermore, if you invest in a real estate property early, it becomes another opportunity. This opportunity is the possibility of making the property part of your passive cash flow. In addition, one of the primary perks of real estate investing is that most investments will generate some cash flow. Under the condition that someone invests alongside a sponsor in a syndicate or real estate fund, this cash flow is earned passively. That means you will no longer need a 9-5 job to earn money.
With a passive cash flow, you can slowly build your wealth. With limited cash flow, it might take a while to build your wealth, but the investment allows you to earn somehow still, and it is also quite convenient that these investments are low-maintenance.
Lastly, compounding growth is another perk of investing in real estate at a young age. Famed physicist Albert Einstein says, “Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pays it.” His words are still relevant, especially when discussing early real estate property investments.
Compounding growth is especially beneficial for those who begin investing in real estate in their 20s and 30s because the earlier you invest, the larger the growth your investment will accrue. To calculate the values of the investment, you can use a compounding growth calculator. Compounding growth can speed up your journey to financial freedom.
There are plenty of perks to investing in real estate property early. Most of them play largely off the concept the earlier you invest, the more and better the rewards you will reap – and this is due to the passage of time. Aside from a possible future home, a real estate property investment like a condo or a home in a subdivision can help you achieve financial success and freedom.
Megaworld has two great real estate opportunities in the form of Tulip Gardens, and Prana Garden Villas.
Tulip Gardens in Southwoods City is the latest mid-rise residential condominium in Southwoods City. Its amenities include a pool for children and adults, a jogging area, an outdoor playground, and a gym. Located at the heart of the South, Tulip Gardens Southwood is a perfect real estate investment for those who want to live nearer the business districts of the South and for families searching for a cleaner residential environment packed with lush green trees.
On the other hand, Prana Garden Villas is a Zen and Buddhist-inspired residential haven. Prana Garden Villas derives its name from the Sanskrit word for “life force” or “vital principle.” Prana Garden Villas offers numerous amenities such as clubhouses, a swimming pool – and proximity to lush gardens and diverse flora and fauna. For luxurious resort-like living, Prana Garden Villas is your best bet.