The Top 10 Mistakes 20-Somethings Make Regarding Real Estate
Huffington Post | November 22, 2013 | link
You probably think I’m just a bit crazy for including the phrase “20-something” and “real estate” in the same title.
Okay, maybe you have a point. At this point in life, many 20-somethings are more interested in when the next game of Call of Duty will start than the best way to start building their financial future. However, there are those of us who want more out of life and understand the immense power of time that we have in building wealth.
As a real estate fan, and one who acquired dozens of properties in my early twenties, I want to focus specifically on the mistakes that I see many young people making today regarding real estate and offer some real world strategies for overcoming these concerns.
Whether or not you own any property yet, these tips should help you navigate the often muddy (but often profitable) world of real estate.
1.) Living With Mom And Dad Too Long
Admit it, as you are reading this, someone’s face is coming to mind.. and maybe it’s yours?
If you are staying with Mom and Dad simply to escape the reality that you are grown up, it’s time to grow up and get a job, start paying your bills and meet the world. The only exception I make to this rule is if you are living at home to save money or get out of debt.. but if that’s you, don’t use your freed-up cash to spend on frivolous things or work less hours. Accomplish your goals as quickly as possible and get on with your life.
2.) Not Doing Your Homework
Many 20-somethings believe homework ended when school ended, but when it comes to buying real estate, as either a home or as an investment, it all begins with homework. Knowing what makes a good deal a good deal, what makes a good location a good location and so on are extremely valuable skills to have. These skills are not impossible to obtain, as there are thousands of books, podcasts, blogs and more that can teach you how to invest in real estate at a young age.
3.) Believing “Real Estate” Is For The Old, Rich, And Boring
Yes, real estate is for old boring folks with a lot of money.
However, it’s also for the young, the hip, the middle-aged and every other kind of person who wants a killer smart way to use real estate to build serious wealth. With hundreds of ways to invest in real estate, from buying your own home to buying investment properties, there is no shortage of options for you.
4.) Not Buying With Flexibility In Mind
Those young people who do buy real estate often times buy real estate without realizing that the life they live now is VERY different from the life they’ll probably live next year or in the next decade. As a result, they often buy homes that don’t accommodate change. For example, buying a small, one-bedroom condo may fit your budget.. but how long can you live in a one-bedroom condo?
This same mistake often causes people to buy real estate too early. If you are confident that you’ll be moving out of the area in a short time, think hard about buying any real estate unless you plan to rent the property out using a property manager.