Soundbite: I am young, so how can I get involved in property investing?

http://www.ispeech.org

Image Source: Getty Image

Today’s holiday short comes from Henry, a student who asks: I am a current student in Edinburgh, UK and do not currently have any properties under my belt, however, I am interested in getting into property investment and development as a hobby and potential long-term income stream. As an individual who does not have much financial backing or experience in the area of property investment and development how would I go about starting.

I love it when people so young show an interest in property, or investing more generally, as it means they should get decades of growth by starting out so soon. So, how does a 10-point plan aimed at the younger Gen Z among us sound then? Yep, this one’s for you (or your kids, nephews, grandchildren, etc.).

Podcast: Play in new window | Download

Subscribe: Email | RSS

Resources mentioned

Property Deal Tips & How to Reach me By Telephone

Free Dom Tokens…might be worth something one day: Dominium referral link

Link to the Podcast feedback survey

Today’s must do’s

Subscribe to and review the show in iTunes…and while you are at it please help us to spread the word by telling all your friends too!

Send in your property stories, questions or moans to podcast@thepropertyvoice.net and we will try and feature YOU on the show too!

Property Investor Toolkit – here is the book link on amazon.co.uk & amazon.com in case you would like to get yourself a copy to accompany this series

Get talking!

Join in the discussion, either here in the comments section below, or by emailing us at podcast@thepropertyvoice.net

Start a conversation on Twitter with us @PropertyVoiceUK or on our Facebook page

Transcription of the show

Hello, and welcome to another episode of The Property Voice podcast. My name is Richard Brown and as always, it’s a pleasure to have you join me on the show again today.

Today’s holiday short comes from Henry, a student who wants to know how he can get involved in property investing and developing whilst still young, with no financial backing or knowledge.

Let’s hear the story and see how I responded with a 10-point action plan now then…

Property Chatter

This comes from Henry…

Hello All,

I am a current student in Edinburgh, UK and do not currently have any properties under my belt, however, I am interested in getting into property investment and development as a hobby and potential long term income stream.

As an individual who does not have much financial backing or experience in the area of property investment and development how would I go about starting. I am currently saving money to attempt to afford a deposit on my first mortgage, however I do understand a lot more would go into which house I would go for etc.

Any advice you could share that could help a newbie get into this area without a large amount of financial backing would be incredibly helpful!

Cheers

Henry

Richard’s Response

Hi Henry

What a great time (and presumably age) to think of getting started!

Here's what I would do if I had my time again...

1. Carry on saving, perhaps getting an extra job or hours but clearly without jeopardising your studies (sounds like you might be doing this already).
2. Realistically, you won't qualify for a residential mortgage until you are in full-time employment, so set a target of owning your own home within 2 years of starting work full-time.
3. Consider taking a second part-time job when you start work to top up the savings plan and avoid all luxuries until you have saved up the equivalent of a 5% to 10% deposit.
4. Take advantage of the Government tax breaks like the Lifetime / Help to Buy ISA and Help to Buy Mortgage scheme.
5. Buy a property with at least 2 bedrooms and rent out the spare room as some extra tax-free income to start saving for the next one and dip your toe into dealing with tenants.
6. Consider becoming a property investor / developer's apprentice - probably doing desktop work, unless you can find one locally. I might be looking for one myself soon…
7. Educate yourself using free and low-cost resources...check out www.thepropertyvoice.net website for more on that.
8. Set up your life plan, targets and goals of what you want to achieve, by when and crucially in what way (by this I mean lifestyle, preferences, non-negotiables, etc, not strategy)...this will help focus your attention for the future that is relevant and meaningful to you.
9. Remember that it’s a marathon, not a sprint and as Buffett says 'its time in the market, not timing the market that counts'...you are young enough to witness the next 3 full property cycles at least I expect.
10. Have some fun along the way, celebrate the small wins and reward yourself in modest ways to keep your motivation high.

By the way, my niece has followed these first 5 tips and is looking to buy her first home within two years of leaving university, so it can be done!

All the best to you!

Richard

So, that’s my next holiday short…another one is coming up next week.

As a reminder, the show notes can be found over at www.thepropertyvoice.net. Or, if you want to talk about anything from today’s show, or just talk property investing more generally, email me at podcast@thepropertyvoice.net, I would be happy to hear from you! Ciao, Ciao

Once again, all I want to say is thank you very much for listening once again this week and until next time on The Property Voice Podcast…it’s ciao-ciao.