Millennials have made a big impact on the business world. They’ve made social media a huge aspect of any business, and they’re helping companies embrace more flexible working hours, but there’s one area that’s still foreign to a lot of millennials — investing.
Property investment is one of the most popular and successful ways to grow your income and help generate better financial freedom. The number of young people interested in property investment is beginning to grow, with a year on year rise in applications for buy to let mortgages from people aged between 20 to 39 since 2015. While young people are showing more of an interest in property investment, however, more millennials should still be educating themselves on the power of buy to let.
One of the main reasons to start thinking about investing while you’re younger is time. Time plays a big part in property investment, with properties often rising in value as more time goes on. Of course, this tends to depend on the area you invest in. Some UK cities like Liverpool and Manchester have a proven track record for positive house price growth, with the north-west region displaying the fastest rates of growth. This north-west’s house price growth is also predicted to continue over the next five years, making now the perfect time to buy a property in the region. Not only is capital appreciation thriving in this region, but Liverpool and Manchester also have some of the highest rental yields in the UK. Those investing in properties such as those from RW Invest can benefit from this combination of rising house prices and attractive rental yields. The sooner you invest in property, the higher the chances that the property will have grown in value by the time you choose to resell.
Millennials have a lot of skills and qualities that help them thrive in the world of business. One of the things that makes this generation stand out is their knowledge on everything tech related, which is a quality that can also help when it comes to property ventures. Thanks to the help of smartphones and social media, millennials could be at a disadvantage when promoting their buy to let property to potential tenants. This could mean the ability to take clear and presentable photographs of their property without the need to hire the help of a professional photographer.
All investments come with some amount of risk, but when you’re younger, this risk becomes less of an issue. Young people can often afford to make mistakes early on in their career as this will have less of an impact than when they’re older and have other commitments like a family to support or lots of weighty expenses. If things do go wrong with an investment, younger people also have more time to recover from any setbacks before trying again.
For those keen to build an extensive property portfolio, investing while you’re at a young age also means that by the time you’re in your fifties or sixties, you’ll have a good understanding of the property market and be an expert in your field. You will have also accumulated a larger amount of wealth by the time you reach an older age, which leaves the door open to invest in bigger and riskier ventures.