The twenties is a transitional period in adult life, where you are legal, of age and are able to make adult decisions, even though still young at heart. It is the time when all the things we’ve learned and all the training we have got are put into use. It gives us the freedom of choice as adults.
This combination allows for a truly exciting period in our lives that can make or break our future stability. It is imperative that we make smart investments in our twenties and this article will touch on six reasons why you should invest in real estate in your twenties.
1. Interest
Buying or taking a loan for a house or apartment in your twenties guarantees property value increase over the years, the interest generated from your investment can then be used to invest in something else or can be used to purchase another property.
For instance, a property bought in 2005 would have tripled or even quadrupled in value by 2019, the figure could even be outrageous if there was an inflation in the economy, as It was during the oil boom in the 1970s that a whole lot of estates were built in GRA’s and all over Lagos.
Also. the ability to let your assets accumulate interests and reinvest to generate more interest is the secret of millionaires and billionaires.
ALSO READ: HOW TO START INVESTING IN REAL ESTATE IN YOUR 20S
2. Social Value
The feeling of waking up to your own home is priceless, being known as a landlord elevates you above tenants and squatters in the society. You become a ‘member of the landlord class’.
In a society where everyone is investing in social media, real estate investment will stand the test of time and elevate you above others. Remember, your children won’t inherit Instagram likes or the latest phones, clothes, etc.
Investing will enable you to sit with the movers and shakers as a landlord in his/her twenties will be respected amongst his/her peers and elders as well.
It makes a lot of sense to own a property and become a socially responsible member of society, who is seen as a worthwhile person by peers and elders alike, it is much better than owning expensive gadgets that go out of fashion and value in 12 months.
3. You Have Time and Energy
Our twenties offer us a whole lot of free time. This free time and energy allow us to use our skills and potential to create real value for our offered services which in turn increases our potential earnings at our workplaces or with our clients.
You are also at an advantage when applying for a loan as providers would rather offer you a long term loan as against offering the same to someone in their 40s because they feel you have 30- 40 years to work and should be able to pay back.
This free time and energy is an advantage we want to use as best as possible before we start to run out of it when life becomes more settled and we have more mouths to feed and lives to cater for.
ALSO READ: TOP REASONS TO GO FOR AN INSPECTION BEFORE BUYING A HOUSE
4. Collateral
Let’s face it, if you don’t have a healthy inheritance or a trust fund like a lucky few, it is going to be hard to raise the capital you need to start that dream business or pay those huge fees for a quality education/training.
It is, therefore, necessary to have an asset that can stand as collateral for a loan. Imagine finding out about a huge business opportunity or stumbling on an Idea that could turn your whole life around and not having the capital to secure them. That is a tough place to be and is reason enough to empower yourself in your twenties by investing in a property whose value could be used to facilitate that loan. It’s better to know that even in the hard or complex times, you can acquire the capital you need with your investment.
ALSO READ: UNDERSTANDING LAND TITLES IN NIGERIA
5. A Flexible Investment
With the advantage of being in your twenties, owning a property can be a flexible venture as you don’t have to live in there, assuming you aren’t married or trying to settle down.
This scenario could be to your benefit by renting out that property you generate a steady income with which you could use to travel, have a good life, while living with your family and loved ones. This means you get the best of both worlds.
6. Freedom
Three things are recognized as determiners for estimating a person’s “Value of Living”; food, shelter, and clothing in no particular order, anyone who provides all three for themselves is considered an adult and in turn, is highly respected.
Owning a home in your twenties puts you at the forefront of attaining the freedom that adulthood offers as it’s a clear statement of intent to your parents and guardians who may still see you as a child or might still be protective over you. and so, subject to their rules and protocols.
Becoming a landlord tells them that you’re already independent and able to stand on your own. The feeling of having your parents visit you and become subject to your house rules is truly priceless. Do you want to be free? Invest in real estate in your twenties.
