Best Ways to Start Real Estate Investment in Your 20s

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04 JUNE, 2021

When you are young, you have fewer commitments, more flexibility in life and can opt to take more risks. Beginning your investment journey with real estate as a young investor has its own perks. Planning to invest in real estate in your 20s, helps you build a safety net, allow you more time to build your wealth. It will help you learn and perfect the art of real estate investment. So, find out the best ways in which you can successfully start investing in the real estate market in your 20s.

Educate yourself about real estate
As a young investor, it is advised to first learn more about real estate instead of hurriedly purchasing a property. Read various blogs, keep track of the news for any current updates on real estate, speak to your friends and family, and other such activities to keep yourself informed. This will help you understand real estate better and enable you to decide on an ideal location, as it is a key valuable real estate.
Maintain your personal finances
It is always a good idea to start investing your money and save up in case you are set on buying a property. Analyse your monthly expenses and follow a strategy to increase your savings. Having enough founds in hand helps you make a down payment which can help in reducing the loan amount and also get a low interest rate. Also, lenders do not sanction 100% of property value. While you manage your savings, it is recommended to be on track with any of your other loans. Making regular repayments boost your credit score, thereby improving your home loan eligibility to a great extent.
Expand your financial portfolio
Diversifying your investments and expanding your financial portfolio can help in maintaining a good mix of risk and returns. This not only helps you enjoy the benefits of various financial tools but also get security from the risks involved. Investing in different asset classes can safeguard your savings from market fluctuations. Hence, you can explore several investment options that promote savings.
Plan for uncertainties in the future
Maintaining a contingency plan in case of any real estate related emergencies is a must. Possibilities such as an increase in home loan interest rates, delayed property construction, loss of income leading to defaulting on your loan, etc. are feasible. To deal with these situations, you need to set aside an emergency fund or withdraw from any of your investments. Therefore, planning for such incidents beforehand can help you overcome the crisis without much trouble.

The decisions you choose to make now will have a significant impact on your financial life later. Hence, keep a note of the aspects mentioned above while considering investing in real estate and make plans towards purchasing a good property. With the help of online calculators, you can find out your home loan eligibility to better manage your savings. Avail a home loan at an attractive interest rate and a flexible tenure with Kotak Mahindra Bank, today.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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