If you are in a younger age group (under 40-years-old) then you should consider yourself to be fortunate. With a longer investment time horizon, this type of investor is able to take on further risk than a more senior investor. With intelligent planning, and proper diversification, a person in this demographic can realize very high gains with relatively low risk.
Of course there will be those investments that stay about the same, or go down in value, but others will shoot up exponentially over the course of years or decades. For people in the 25 to 39-year-old age groups, the investing game has changed greatly since their parent’s generation. The financial turmoil of the last decade has shaped younger people into becoming more financially responsible.
Buying a Single-Family Dwelling As a Young Investor
A single-family detached home, also called a single-detached dwelling, single-family residence or separate house, is a freestanding residential building. It is defined in opposition to a multi-family residential dwelling (Wikipedia.org).
Single-family homes are great for younger investors for a number of reasons, but mostly because they give great returns over the long term. That being said, it may make more sense to buy a multifamily property, depending on the market at the time, and your specific financial situation. There are many advantages, but also many challenges to buying rental properties when you are young.
Why You Should Buy Investment Properties While You’re Young
Perhaps the biggest obstacle to investing in real estate as a young person is getting enough money to pay for the repairs and down payment. Keep in mind that there are also many ways to buy rental properties with little money down, and it is easier to do so when you are young. Being younger means that you can be more flexible, that you have more time, and that you don’t have as many responsibilities. Older individuals may also not be willing to make adjustments to their living situation. Finally, when you are young with nothing to tie you down, it is much easier to move frequently if necessary.