How Students Can Get on the Property Market
Category Advice
Your college years are supposed to be fun and youthful, but it's also the prime time of your life to be thinking about your financial future. Real estate is the perfect tool to start investing in your financial success, and if you think you're too young to get ahead of the property market - think again!
This is not only a plausible venture, but there is more than one way to get in the game:
Real Estate Wholesaling
As a property wholesaler, you are essentially standing in as the middle-man between the seller and a cash buyer to motivate the transaction.
Your job would be to find homeowners who are eager to sell, sign the offer-to-purchase contract for the property, and then sell the contract to another investor for a profit. Your profit-margin could range from 3% to 6% or higher, depending on your confidence in the sale.
Wholesaling takes knowledge, intense marketing and people skills. If you are in the right space to take this on, it is a highly effective way of profiting from real estate without a large amount of capital needed.
Renting to fellow students
If you are a student, you would have already heard of the term "digs". This is when students live in a shared home with multiple bedrooms. The bedrooms are generally rented individually and the rest of the house is communal space.
In towns where tertiary education is popular, demand for these kinds of rentals are generally high, so you shouldn't find it hard to find tenants.
This property investment will take capital for a downpayment and closing costs, and will also require some management. However, being a landlord to student accommodation is a low-risk and rewarding way to jump into the real estate market.
Buy REITs (real estate investment trusts)
Investing in a REIT requires minimal funds and is a safe way to see return in the property market.
The estate-holding company takes the shares you've put in, and invests them into real-estate such as shopping centres, offices, and wherever else they see opportunity.
This kind of investment is ideal for someone who wants to get in the market, but doesn't have the time for responsibilities such as property management. The hands-off approach to real estate holds great opportunity!
The first step to making this leap is investing your time into education. Do your research and make sure you are confident in your knowledge before stepping into the market.
If the prospect of property investment piques your interest, reach out to us for insight and guidance taking the next step.
Author: SAproperty.com
