Having a child comes with a whole lot of responsibilities. Every parent only wants what is best for their child and they strive to create the best future for their kids. The smartest way to secure your child’s future is by planning and strategising well in advance, so that you can help your child through every stage of his or her life. One of the best ways to secure your child’s future is through smart and systematic property investments, and here are 6 steps to do just that.

1. Plan in advance

If you want to secure your child’s future using property investments, then you need to have an investment plan well in advance. It is always a good idea to sit down with your financial advisor as well as with a real estate expert to properly understand the property market and thus make the right investment decisions, now and in the future. In fact, experts say that the first and most important investment that you need to make is the primary residence. If you already own your home, be sure to get a house value estimate every few years to know the value of your property, and thus the value of your child’s future.

2. Start early

First and foremost, you need to start investing as early as possible. By doing so, you will be able to accumulate a decent property portfolio by the time your child has grown up, which will certainly help them through different stages of their lives. Every investor makes some mistakes along the way, so by starting early you have the chance to correct any bad investment decisions and you will be able to even out your portfolio at the end of the day. Also, by investing early, you will have the liberty to take risks; after all, high risks often result in high returns. The later you start, the lesser the risks you can take which could undermine your returns.

3. Invest in upcoming areas

When you start investing in property at an early stage, you can take risks by investing in upcoming areas. While that area might not develop for the next 15 or 20 years, the fact is that the area will certainly develop by the time your child has grown up, which is ultimately the end goal. Research has shown that investments in upcoming areas have the ability to multiply ten folds, and sometimes even more, if the investment is made at the right time. Choose the right areas based on infrastructure and development, upcoming projects, employment opportunities and potential demand.

4. Study the market

If you want to be a successful property investor, you need to study the market thoroughly. Figure out the current market trends as well as the predicted market trends, understand the supply and demand for an area and try to study the local market before making an investment decision. For instance, if you buy an investment property in an area where there is high rental demand, then you will be able to pay off your mortgage using the monthly rent and in turn that property will become an asset for your child. To invest wisely, you need to have in-depth knowledge of the market and the market trends. With that being said, it is always a good idea to engage a market expert before making any investment decisions.

5. Invest based on long-term and short-term needs

When you are investing in property, you need to choose your investments based on your and your child’s short-term and long-term needs. For instance, if your child is going to school after 10 or 15 years, then investing in a property to pay for college or admission fees will be a long-term goal. Similarly, if you plan to sell a property in 1 or 2 years to pay for their school fees or piano lessons, then finding a property that will give you decent returns in a few months will be your short-term goal.

6. Gift a property

If you have excess funds or if you are able to buy a property outright, then you can consider gifting the property to your child directly. This will have tax benefits for you as well as for your child. Of course, you must speak to a financial expert regarding the taxation chain because you do not want your child to pay heavy taxes on a gifted property. By gifting a property, you will be able to start an investment portfolio for your child directly which will certainly prove to be beneficial in the future.