Most parents would love to give their children a head start in life by helping them make a sound investment in the property market. But even if you can’t help them financially, you can give them good advice and equip them to make wise decisions as they journey out to find their own financial feet and delve into the world of property investments.
Here are five valuable lessons to teach your children about property investments.
- The sooner you save the quicker you can make an investment
Most young adults who are earning their first salaries are tempted to spend their money on luxuries such as clothes, hobbies and entertainment, leaving little room in their budget for savings. This may be fun at first, but many of them will regret this decision later on. Remind your children of the importance of creating goals and saving to achieve them. If one of their goals is to buy an investment property, help them research the costs involved in such a venture, and how much and how long they will have to save to be able to afford it.
- Patience is a valuable investment virtue
We live in a world where we seek instant gratification and success, but in order to make a wise property investment, your child may have to wait to get their finances in order or for the right opportunity to present itself. Teach your children to not seek quick financial rewards, but to make wise decisions by saving enough for a comfortable investment, waiting for gaps in the market, and giving their new investments adequate time to show growth.
- Always plan and research
Most successful and profitable property investments are usually made after careful planning and research. Encourage your children not to make emotional or hasty investments, but rather to read up on property investments, to get to know the market, and do thorough research that will enable them to make informed and sensible decisions.
- Buy what you can afford
The world of property investment is a vast one, with many different types of properties and opportunities to invest in. It may look attractive to buy the best and biggest, but the consequences can be harsh if you can’t afford it. One of your children’s investment strategies should be to shop within their means. Teach them the value in starting off small (or as big as they can comfortably afford) and working towards bigger goals once they reap the rewards of their first investment.
- Work with people who can guide you
As parents you may be able to provide some guidance and assistance to help your children get started in property investments, but if you’re not a professional it’s also wise to step back and let an expert guide them when necessary. Teach your children to surround themselves with people who can provide insight, mentorship, advice, and even share the financial obligations as part of an investment team.
The world of property investment can be daunting to inexperienced buyers, but it doesn’t have to be.
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