Next Gen Investing - Millennials ARE Interested in Real Estate
There’s a rumor that’s been circulating for far too long: Millennials, as in the younger-than-33 crowd –are not, repeat NOT interested in real estate.
While it’s true that a number of Millennials have moved back home, and some are having trouble breaking into home ownership, the myth that the younger generation has NO interest in real estate, is absolutely false and misleading.
Allow me to explain.
First of all, while census data shows that 65% of Millennials are seemingly spurning real estate, what about the other 35% who are purchasing? Not all Millennials are sitting on their hands, some are investing, and some are saving up.
A growing number of Millennials are discovering what many mature investors know to be true: that real estate offers tremendous investment versatility, and that when done right, real estate can be a secure; and extremely financially rewarding investment.
If you’re a young investor who’s looking to get started with real estate, take heart in knowing that you’re not alone. It’s very possible to find success as a young investor. Smart Millennials are jumping on board with real estate, and not looking back. Real estate is an excellent long-term investment, and there are plenty of clear indicators that show that this fact is unlikely to change anytime soon.
If you’re interested in investment properties, pay no attention to the naysayers. There’s success to be had in real estate investing, no matter what your age. To help you on your way, here are five things that you should know about the next generation of real estate investing….
- Choose Your Niche and Go For It
Real estate offers tremendous versatility. Maybe you are a long-term investor, looking to scoop up good deals and wait for the prices to go up, maybe you’re a flipper who wants to fix up a rundown property in exchange for some good hard cash, or maybe you’re landlord material and looking for a way to earn a passive income? No matter what your forte –real estate offers you the opportunity to do just that. Pick a niche, and go for it!
- Grab Your Partners
If you’re going to be purchasing real estate, it’s important to find a knowledgeable realtor in your area to work with. If you’re plan is to be a landlord, find a property manager and free yourself up from the nitty gritty. It will save you a world of hassle, and let you focus on the big picture. Win win!
- Do Your Research
I don’t know how many times it’s been said, but it’s unequivocally true. Don’t operate under assumptions alone. Before purchasing any investment property, take the time to research that property and make sure you are getting a good deal. Look on Zillow, or other websites that show you the true value of a property, hire an independent home inspector to make sure the foundation checks out. Go into each real estate deal with your eyes open and ask questions about any issues that you are uncertain of –and be diligent about obtaining answers. Remember: you can never be too informed.
- Be Financially Wise
Get your finances together. It takes a certain kind of savvy to have the foresight to see that your investment is financially sound. It takes even more diligence to make sure that you don’t fall victim to financial pitfalls along the way. Remember: never operate on assumptions. Don’t base your purchase decisions on price alone. A cheap deal isn’t always a good one. Always, plan for the worst-case scenario –what if your property has to sit vacant for longer than expected due to unforeseen repairs? What if your rental experiences a higher than expected vacancy rate? Always have a backup plan, and enter into any investment with both eyes open! And of course, watch out common pitfalls –like getting locked into a variable interest rate –a rate that changes with the market that could cause your mortgage payment to increase as well.
- Don’t Fall in Love
Real estate investing should not be an emotionally charged endeavour. Don’t make the mistake of falling in love with the first property you see, or being attached to a potential investment. If you miss out on a good opportunity, don’t fall into the trap of nostalgic longings and start thinking ‘if only…’ Get up, move on, and try again.
If you’re a new investor, remember: there’s no rule that says you should wait until your 30s or 40s to start building your investment portfolio. Property has historically proven that it’s more than capable of delivering capital gain, and the sooner you start investing, the sooner you will be on your way towards accruing investments and building wealth. Time’s on your side –but it won’t wait!