Hi, I’m a 24 yr old guy. Been working for a year and a half since graduating. I have no experience in investing in anything. Everything I do know comes from the CFA textbooks. However, while humbly going through the day-to-day grind of my job I’ve saved up enough cash for me to be concerned about ignoring investment opportunities.
I’ve been playing with the idea of investing in a small 1-bedroom / studio unit in the capital city of my home country (which is generally classified as an emerging market). The amount I’ve saved would ideally be used as a downpayment to cover a significant chunk of the cost and the rest financed with either a bank loan or my parents (who I would pay back later).
I’m aware of the general risk and return characterisitics of property:
1) return comes in the form of price appreciation and rent yields 2) there is the risk of prices falling, not finding a tenant, not being able to liquidate the investment at short notice etc. 3) there is the non-monetary benefit of having somewhere to live, 4) location is a very important determinant of value 5) owning a property has many associated costs such as contractual fees, administrative fees, building management fees etc..
I was wondering if anyone with experience in investing specifically in small apartment units such as studios and 1-bedrooms in an urban / city type area could share their experience and if they recommend these as a long term investment.