Welcome to the topic “WHY MORE MILLENNIALS ARE BUYING REAL ESTATE?”
The millennial generation is making a seismic shift in the Colorado real estate market. They basically represent the largest share of the home buying market for five years in a row. Nowadays, they are taking an entirely new approach to homeownership, as the folks in their late 20s or early 30s settle into their careers after closing their student debts. Their next big plan on the horizon will be to buy residential real estate. This generation is very actively changing the housing market, according to the Colorado Licensed realtors.
Reasons why millennials are buying real estate
Millennials are stock market skeptics
Though the Millennial still invest in the stock market, a large number believes that real estate produces better returns on investment as compared to the stock market. The primary reason for this particular mindset is that many of these Millenials were either in college or graduating during the economic recession of 2008, and they had difficulty finding jobs.
In 2007, around two-thirds of the Americans used to invest in the stock market. Ten years later, the number decreased to 50%, as the remaining 50% are looking to invest in real estate. All of these real estate investor statistics clearly show a shift in investment strategy and preferences.
The first home is not their dream home
A large number of millennials in the housing market are the first-time buyers, and therefore, it is not a surprise that this first time won’t be their last one. They are more willing to make compromises on their home purchase as compared to the old buyers.
They see buying a home as an excellent financial investment, and therefore, the best realtor team working with the millennials will be a part of the service that offers to help them understand this investment. They also have a number of expectations from their real estate agents.
They know the value of a tangible asset
The millennials are more visually driven, so owning a tangible real estate asset for them is more appealing as compared to the intangible asset, like stocks. There was a time when it was difficult for the younger generation to invest in real estate because it required a considerable amount of money or down payment. Now, there is online real estate investing platforms that offer various lower-cost options to real estate investing via crowdfunding.
The benefit of owning a tangible asset as compared to the stocks is the appreciation potential, especially for the buy-and-hold investors. Even if the housing market happens to struggle for an extended period of time, history proves that a property will eventually appreciate or will grow in value. Those savvy millennials that invest in the strong markets should also expect to enjoy a steady cash flow on a monthly basis from their real estate property investments.
They head for the suburbs to get what they want
Many Millennials find that the homes are too expansive in the urban areas where they live and work, and therefore, it puts them further out of reach for the millennial buyers. This another big reason why many millennials are moving out to afford what they want.
Another important reason for the millennials planning to buy a home is having or wanting to have their family, and so they are buying to get more space. They also wish to all the features that are hard to find in the city. This young generation prefers to move to the exurbs, or the areas outside the suburbs, as a result. Though it might mean a less convenient location or longer commute times, the Millenials are open to it to become the homeowners.
It can be exciting for the real estate agents to work with the millennials. Many of them make their significant investment by purchasing their first homes in Colorado Investment properties, and the real estate agents get to be the part of this process. By understanding the mindset of the millennials about buying and selling homes, will be helpful for the real estate agents to get a better experience in the long run. It is likely that this generation will buy and sell more real estate in the future.
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Also Read: HOW TO CHOOSE YOUR RIGHT REAL ESTATE AGENT