Not Ready to Buy a House? Why Not Invest in One?

If you're young and not too concerned with buying a house just yet, you still might want to think about the benefits of property investment.

Investing in property while you are young can be a great way to build a solid financial foundation for the future.

You can get all the benefits of home ownership, like building equity in a large asset, while enjoying the flexibility of continuing to rent.


For many, being young means living a carefree lifestyle and enjoying the years before the big responsibilities arrive - family, a mortgage, a career.

Buying a house may seem like the last thing you want to do when you're just starting out working full-time.

Perhaps you have plans to travel, aren't sure where you want to settle yet, or just enjoy having the ability to pack up and change your living situation at the drop of a hat.

So why should you think about investing in property?

Quite simply, because buying and then renting out a house can make a lot of sense even if you don't plan on sticking around in the short term.

Do the math

There is no getting around the fact that if you want to buy a unit or a house you'll probably need to get a home loan.

That means saving up a decent deposit and then having a mortgage payment staring at you each month, right?

Well, the trick with investment property is that once you've saved your pennies and secured a home loan, you can get tenants to pay your mortgage off.

Imagine that. You'd have a home loan but not the monthly repayment - or a vastly reduced one at the very least.

This would mean that while paying rent for the accommodation you are living in, you're also building equity in a property as your tenants contribute to your mortgage.

That equity could come in handy in a few years' time if you wish to get a competitive loan for another property purchase.

How much work is involved?

There is no denying that managing a rental property can involve a fair bit of work.

However you have the option of hiring a property manager to take care of everything from finding the right tenants to arranging repairs and maintenance when necessary.

This will cost you, of course, but you may decide that it is worth the charge if it frees you up from having to worry too much about the day-to-day issues of being a landlord.

It needn't be an all or nothing decision either. You can decide exactly how involved you want to be with your property's management and have a professional agent take care of everything else.