2023-05-07 16:00:00
Investing in real estate is often seen as a way to secure your financial future and build wealth. But getting started in this universe can be daunting, especially for young people who don’t necessarily have a lot of capital or experience. In this article, we’ll explore the different options and tips for starting to invest in real estate at an early age.
Student loans as an investment lever
One of the options for students wishing to invest in real estate is to use student loans. Some banks offer loans to finance studies, with amounts ranging from 20,000 to 50,000 euros. These funds can be used to make a first real estate investment, provided that the loan agreement authorizes free use of the funds.
With a sum of 50,000 euros, it is possible to invest in small real estate such as cellars, car parks or garages, even small apartments. It is nevertheless necessary to broaden its field of research and not limit itself to the most attractive areas, such as the Paris region or the Côte d’Azur. Some cities in central France or in the Saint-Etienne region offer interesting opportunities with prices below 1,000 euros per square meter.
Call on family or friends to co-invest
Another option is to seek the help of relatives, such as parents or uncles and aunts, to make a joint mortgage. This solution makes it possible to reassure the bankers on the solvency of the borrower and to obtain financing. The co-investors must however agree on the distribution of the percentages of ownership of the property.
Beware of disagreements
Choose a easily resalable property will allow you to avoid conflicts in the event of disagreement or change of opinion of the co-investors. However, this option has constraints, in particular that of not getting angry with loved ones.
Work alongside studies to increase borrowing capacity
For young people wishing to invest in real estate, taking part-time or part-time work alongside studies can be an interesting solution. This activity makes it possible to declare income and to have salary slips to present to banks to obtain financing.
However, it should not be expected that all banks will welcome this approach, especially for large amounts. However, by asking for more modest financing (30,000 to 50,000 euros) and by having a personal contribution, it is possible to convince certain banks to finance a first real estate investment.
Meet investors to benefit from their experience
Building a network of experienced investors is an excellent way to acquire knowledge and exchange best practices in real estate. Platforms such as Meetup or Airbnb and Booking conventions allow you to meet property owners and discuss with them.
Young people wishing to invest in real estate should not hesitate to ask questions and seek advice from experienced people. Lots of investors are willing to share their experience and help newbies make the leap.
Train intensively on real estate to gain expertise
Finally, one of the keys to succeed in real estate investment is to train intensively on the subject. Books, blogs, videos, it is essential to immerse your mind in the world of real estate for several weeks or months.
It is important not to fall into the paralysis of information overload and quickly move into practice by visiting real estate, making phone calls and applying the knowledge acquired. Experience is gained in the field and helps to deal with the difficulties encountered during real estate investments.
Investing in real estate when you are young is quite possible by adopting different strategies, by surrounding yourself with competent people and by training intensively on the subject. The most important thing is to take the plunge and embark on this exciting and rewarding adventure.
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