Young property investors: What you need to know

Some people get life sorted really young. It seems as though every week the NZ Herald is profiling some young kiwi property investor who’s made it big in property by making smart choices early on in life.

You can read how a couple turned $15,700 into $10.5 million by investing in property. Or how about this young landlord who stacked up 11 rental properties in just 5 years. Or here, where young property investors share their tips for success.

If you’re hungry enough to get into the market, there’s no reason you can’t follow in their stead. Even with property prices in major centres at an all-time high, there are plenty of opportunities for young investors – you just need to see the possibilities.

1. Get ready, and get positive

It can be easy to get stuck in negative thinking about investing, especially when many professionals are talking about high prices and bubbles. But there are always opportunities out there, and by adopting a positive attitude, you open yourself up to seeing and jumping on them.

Along with your positive attitude, you should set yourself up for success early. Many young investors are passionate savers, squirreling their money away until they can come up with that initial deposit. Whatever it takes – whether that’s living with mum and dad, forgoing luxuries, or driving a beat-up old car – save hard, eliminate debt, and keep an eye out for opportunities.

2. Seek help from the RIGHT professionals

There’s so much to learn about investing, it would be unwise to go it alone, especially when you don’t have a huge financial cushion to fall back on. Investment advisors like OPES Partners can help guide you through the process and give you the knowledge you need to make smart decisions.

Some of our young clients have talked about negative experiences they had approaching banks or investment professionals. “They didn’t take me seriously because I was so young. They didn’t think I was mature enough to be an investor. That’s why I came to you guys – no one at OPES has ever treated me like I’m less than a professional.”

3. Set ambitious goals, and celebrate when you smash them

As we’ve already mentioned, for young investors who don’t have a huge income, saving that first deposit can be a long, slow slog. It helps to set monthly, quarterly, and yearly goals, so you can keep on track and celebrate milestones.

Take advantage of windfalls and programmes that can help, like Kiwisaver. And always “pay yourself first” by putting your allocated savings money aside as soon as you get it.

There are communities of people online teaching you how to live frugally while still leading an enjoyable life. Check out Mr Money Mustache and Get Rich Slowly for tips.

Young investors are getting ahead of their pairs by starting in property early. If you want to join them, contact the team at OPES today – we’ll help you get started.