Actually real estate is a great investment.
Investment property can grow in value overtime and while you have it you can actually use it to generate income.
When looking for investment properties, look for properties located in areas that are likely to see some growth in the near future. Since you don’t know how soon you will be able to resell it, keep you options open. Look for properties that could easily be rented out, either as a long term let or as temporary accommodation.
Unlike other investments, property will come with regular expenses, such as tax, utilities, agent’s fees, insurances, maintenance and so on. So make sure you will be able to meet your obligations even when things didn’t turned out the way you expected.
This is especially important if you are borrowing money to buy an investment property. Although renting it may actually pay for the mortgage, there may be income gaps if you are for example between tenants.
Besides, if all your income is being used up to cover the mortgage you will only see some tangible profit after a very long time…
Instead of borrowing money to invest in property it may be a better option to save up until you have enough to pay cash. Maybe that means that you need to start with a low budget property and take it from there.
You can get on the property ladder for as little as €20,000. Check more than 1,000 properties under 20K here!