Investing in real estate isn’t just for your parents or those looking for an income stream once they have retired; far from it. While reports suggest that millennials killed the housing market (along with everything it seems), there is a sway in trends as the oldest of this generation head towards their early 40s and more millennials become settled career-wise, and with families.
But regardless of your situation, if you are looking to invest in real estate as a millennial, there has never been a better time to make your money work that little bit harder for you. Real estate investing has many benefits. The US has about 75.4 million millennials, according to Pew Research. The Millennial generation has had and will continue to have the most significant impact on how the housing market shifts. Florida, Texas, Arizona, and Tennessee are increasingly popular U.S. markets for millennials to be looking at, with West Knoxville real estate companies as a starting point if you’re looking at Tennessee.
Real estate is preferable to the stock market
While millennials still invest in the stock market, a larger majority feel real estate offers superior profits. Many millennials were in college or graduating during the 2008 recession and had trouble finding work. Even when the housing bubble burst, millennials were wary of investing in the stock market.
In 2007, about two-thirds of Americans invested in stocks. After ten years, slightly over half invested in stocks, while the other half was trying to buy real estate. The data reflects a shift in investment strategy and preferences.
Millennials are aware of housing market changes
According to an American Modern Insurance Group report, 86 percent of Millennials expect to buy a home eventually, even if they now rent. 85% of Millennials think real estate is a solid investment. Because they lived through the Great Recession of 2008, this generation favors real estate over other investments.
The Millennials’ aversion to the stock market looks to be a long-term effect of the Great Recession. Contrary to popular belief, Millennials prefer to invest in real estate. While Millennials are stereotyped as entitled and lazy, they are savvy investors, generating higher overall profits. Growing populations, career prospects, and monthly cash flow opportunities have influenced this generation’s real estate decisions.
Changes in technology fuel growth and investment
Millennials grew up on the cusp of the digital revolution. As they aged, their lives evolved around the abundance of technology. No longer were they only able to consult with a Real Estate Broker in person but could do so online too.
Other advances have also made it easier than ever to invest.
Online real estate crowdfunding has grown in recent years. Crowdfunding allows for smaller initial investments in real estate. Be warned; if this is something you are looking into, crowdfunding companies need an upfront contribution of $500 to $5,000. Most crowdfunding or syndication companies outsource property management, so they don’t have to deal with the time and hassle.
Other reasons Millennials like this investing include its flexibility, diversity, and inexpensive expenses. Easy internet access and management is another motivator for Millennial real estate investors.
People of all ages have never had more options to invest in real estate than they have today. Millennials invest in real estate because they believe it offers a better return on their money than the stock market ever could. More and more Millennials want to make a passive monthly income, save for retirement, and live the lifestyle they desire. They are increasingly doing this by investing in real estate.