An early investment teaches the real difference between investments and savings. By investing at an early stage of life, you learn a pattern of financial independence and discipline.
Investments are generally bucketed into six main categories: growth investment, shares, defensive investments, cash, fixed interest, and property.
Growth investments are more suitable for long term investors that are willing and able to withstand market ups and downs. While defensive investments are more focused on generating income, rather than growth, in the long term, and are considered lower risk than growth investments. A mutual fund is an example of defensive investment.
Property investment on the other hand is a growth investment that can rise substantially over a medium to long term period. Property investment or real estate investment generates ongoing passive income whose value keeps increasing over time. One of the benefits of real estate is the predictive cash flow in nature. Another plus to this investment is that it can be leveraged to borrow capital to increase the potential return of an investment.
As an individual you might wonder when is the right age to start investing.
If you are in your 20s, you have the biggest advantage over everyone by investing right now. Because of compound interest, whatever you invest during this decade has the greatest possible growth. Investors in their 20s have more time to absorb changes in the market and focus on more aggressive growth investments like stocks and real estate.
If you are in your 30s, you need to start putting money away. There is still enough time to reap the rewards of compound interest, but old enough to be investing 10% to 15% of your income. Even if you’re now starting a family, contributing to your retirement should be a top priority. You still have 30 to 40 active working years left, so this is when you need to maximize that contribution. You can still afford some risk, but it may be time to start adding real estate to your investment mix.
If you’ve procrastinated saving for retirement until your 40s—or if you were in a low-paying career and switched to something more lucrative—now is the time to buckle down and get serious. If you’re already on track, use this time to do serious portfolio building. You’re at the midpoint of your career, and you’re probably approaching your peak earning potential.
If you’re in your 50s, now is not the time to lose focus. If you spent your younger years investing in real estate, you need to be more conservative.
If you’re in your 60s and above, always remember the Chinese proverb says: “The best time to plant a tree was 20 years ago. The second-best time is now.” Hence, it’s never too late to start.
Lastly, whether, you’re in your 20s, 40s or 60s, always remember, you’re never out of investment options. Capitalizing on the financial gains of the real estate sector demands investment in the sector. These investments are not limited to age or income level. Anyone and everyone can invest in the sector. For instance, you can begin a real estate investment journey with as low as #100,000 by investing in AceVille estate by DNJ properties or with #1,000,000 by investing in Eminence Court estate by DNJ properties
Talk to DNJ properties today, and let’s begin your investment journey together.