The Truth About Millennials Investing in Real Estate
Millennials and investing in real estate has been a hot topic for a while now. You hear jokes like….Millionaire to millennials: Lay off the avocado toast if you want a house.
Millennials tend to get a bad rep. The common perception of the Millennial generation, which refers to people that were born between the years 1982 to 2000, is that they are entitled, spoiled, lazy, obsessed with social media and lack a strong work ethic… The list goes on. But is it accurate?
U.S. Millennials are now the largest age group in the United States. There are millions of intelligent hard working Millennials that are changing the world. More and Millennials are getting great jobs and gaining financial stability every single day.
1 in 6 Millenials now have savings of $100,000 or more according to a new Bank of America survey.
Contrary to popular belief, Millennials aren’t as lacking with ther money management skills as you might think. This generation loves to find a good deal and invest in something that they really believe in. It makes a lot of sense that Millennials are becoming increasingly interested in Real Estate. In fact, recent research from Fannie Mae found that 85% of Millennials agree that real estate is a good investment. The Millennial generation is also more likely to value real estate more highly over other types of asset classes. This has a lot to do with the Great Recession of 2008 that many Millennials lived through.
One thing is for sure, Millennials these days are definitely open to investing in Real Estate. This trend is only going to continue in the future.
Is it really true that most Millennials can’t afford to invest in real estate?
According to a recent Pew Research Center analysis of U.S. Census Bureau data, more than 1 in every 3 working Americans are Millennials. That means that the Millennial generation is gaining wealth from their employers and looking for great investment opportunities.
In 2017, millennials made up the largest group of homebuyers (34 percent of the total buying pool) and of all millennial homebuyers, 66 percent were first timers.
Millennials can indeed afford to invest in real estate. Their generation will soon make up the vast majority of all real estate buyers in the US. Homeownership is on the rise in the United States, and the real estate sector is flourishing. It’s safe to say that the rise has something to do with Millennials and their willingness to invest in Real Estate.
One common conception about Millennials has some real truth behind it. It’s fair to say that most Millennials are very adept with technology. The rise of social media, the internet, smartphones, and more has placed technology directly into the hands of millions. Real estate has become increasingly integrated with technology as well. Applications like AirBnb allow you to rent out and manage an investment property directly from your smartphone. These advances in technology are driving the real estate market forward and creating lots of new opportunities for savvy real estate professionals and Millennials alike.
Since Millennials are great with technology, they are more willing to consider these newer investment options. Providing the opportunity for Millennials to Invest in real estate in more modern ways is something that can’t be ignored. That’s where real estate crowdfunding comes into play.
Investing in Real Estate Online
Real Estate investing online via crowdfunding allows Millennials (and anyone else for that matter) to invest in Real Estate without a large initial investment, and without the hassle of being a landlord. It’s easy to choose which specific real estate investment they want to put their money in with Crowdfunding. Some fintech platforms like DiversyFund, offers the option to invest in funds which allows regular investors to Make a single investment and immediately own a portfolio of diversified real estate assets. The flexibility, variety, and low costs that real estate investing via crowdfunding offers makes it extremely attractive to Millennials.
See how DiversyFund can help yu build wealth through real estate. Check out our investment opportunities by creating a free account today.