In May this year, Kevin Young started a new video series called Ask Kevin Young. It is a great way for Property Club members as well as Young Investors Club members to find answers to their property investment questions. Take a look at the latest episode where Kevin is asked about how to deal with an investment property that is not experiencing growth. In the following article we discuss this episode in relation to young investors, and how they can manage a property experiencing no growth:
Kevin Young’s Advice
Kevin Young, founder of the Property Club, has some great advice for an investor who has what should be a premium property but is unfortunately not experiencing capital growth. From the video, Kevin suggests that the lack of growth in the investment property is also affecting cheaper properties in the area. However, when this has happened in the past, the more expensive properties have experienced faster growth once the prices began to rise again.
Essentially, Kevin Young’s advice (if you have a good investment property going ‘sideways’) is to sit it out and wait for the eventual recovery or correction. Another good pointer is to value add to property growth by adding furniture – which will increase the overall rental yields in the meantime.
The Advantage of Being a Young Investor
While many property investors are looking towards their retirement, younger investors have the benefit of time (and hopefully patience) on their side. If you are 20 or 30 years old then it is likely that many of your properties will go through a number of cycles – some flat and some growth. While you might want your investment property to grow instantly, patience will pay off eventually – especially if there has been a lack of price growth in a good location.
The most important tip to keep in mind as a young investor is to be patient when you are building your portfolio. While investors who are approaching retirement will want (or even need) to see capital growth in the short term – younger investors can play the long game. Properties in your portfolio can have decades in order to increase in value. However, you will need to make sure you are making the right improvements during this time in order to maximise your rental yields and property growth.
If you have a question to ask Kevin Young for the Ask Kevin Young video series you can submit it here. If you are a young investor and want to learn more about the property market and property growth (as well as receive mentoring from experienced investors) then feel free to get in touch or visit the Property Club website to sign up today.