The Right Age to Start your Property Portfolio


Age shouldn’t be a deterrent when you’re thinking about investing in the property market. Nonetheless, it’s an important factor and it can guide you on the best approach to investing. There are buy-to-let properties that you can count on to have a guaranteed rental yield in only 3 to 5 years. If you’re close to retiring, this is a great way of boosting your income after retirement. As long as you can find property in the right location and with consistent demand, the issue of age will not come up.

Starting young

Investing in real estate from a young age is the best option when you want to build a property portfolio. The property market has proven to be more stable than other investment options even in the wake of significant events such as UK’s exit from the EU. This means you’re not likely to lose money by investing in real estate.
By around 2019, the price of home ownership will be going up by an average of 6% annually and by 2025 it will placate at 5% according to PricewaterhouseCoopers. This is all thanks to the consistently high demand for housing in the UK. This simply means that property looks to be a good investment avenue in the UK at the moment.
The reason why it’s so important to get into property investment early is that a typical mortgage can take around 25 years to pay off. You can’t really enjoy the fruits of your investment if you’re still making payments to the bank. Starting early will ensure you have enough time to pay off the mortgage so you can get to enjoy the passive income later on in life. Starting early will also mean that you have more time to build your portfolio by investing in other properties.

Starting Old

If your investment will require financing, starting late in life could be a deterrent since lenders have strict age limits when it comes to older borrowers. However, if you have the necessary funds, you may not need to take out a mortgage in the first place. Sellers will prefer payments made in cash and this may enable you to invest in more properties and the transaction will also be handled much more quickly. If you’ve already retired, investing in rental property will have two main advantages. For starters, it will give you a secure income source without you having to put in a lot of work and secondly, it will ensure that you have something to leave your children.
There are many investment opportunities that are cash-only and this can favour older investors. Some of these have returns of as high as 10% annually. Despite this, it’s still a good idea to jump into the water as early as possible in life. Young investors will find it easier to access mortgages. They will also have more time to build their portfolios. In case things go south, a young investor will have more time to recover.

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