In recent years, the real estate market has seen a rise in millennial homebuyers despite being tagged as financially insecure and averse to homeownership. Research surprisingly points out that the vast majority of millennials now consider homeownership to be their top priority and for them, owning a home is a wise investment option. Consequently, you might wonder what are the millennials’ advantage in investing especially in real estate. In this article, let us get to know more about the millennials and why they should start investing.
Who are the millennials?
Millennials are generally known as people who are born sometime between the mid-1980s and mid-1990s. Generally, they are known to be waiting longer to buy and purchase their first homes at the median age of 29, which is significantly later than prior generations.
Millennials are also said to be looking for long-term homeownership. They may be often pegged as being noncommittal due to their tendency to settle down later in life and hop from one job to another as compared to prior generations. It is important to most millennial homebuyers that they secure a home in a safe neighborhood with proximity to schools and a short commute to work.
Because they are known as digital natives, the use of mobile phones is vital among this generation. Thus, the majority of millennials primarily conduct their property search on their phones and when it comes to their preferred communication method, it will be a text message or email, but there are some who may prefer phone calls as well.
Millennials are also known as good researchers, which applies to everything in their life. From researching the newest restaurants, the best moving companies, and more, millennials’ first step when beginning any project is always to do research. Because of this behavior, millennials’ advantage in real estate investing is their ability to do their own research and also tend to view a property that has photos, videos, and a virtual tour.
Because of their lack of experience in home buying, they want to work with a trustworthy agent who could guide them through the process. Although they enjoy conducting their own research prior to beginning a project, they still recognize the importance of hiring a knowledgeable and trustworthy agent.
Another interesting characteristic of millennial homebuyers is knowing what they want. Most millennials take the leap from renting to buying a property, or they spend some time living with their parents at home to save money prior to purchasing a home. Because of the time they spend renting or living at home, they have time to narrow down their options and know exactly what they want in a home. Thus, it takes them less time to decide on a property when compared to prior generations.
In terms of culture, millennials seek a strong sense of community, which also applies to their home buying choices. With the increase in individuals working from home each year, millennials are drawn to neighborhoods that have co-working spaces and coffee shops where they can work during the day. Thus, they are usually attracted to homes that are in close proximity to co-working spaces and those areas with monthly social events, outdoor dining options, and rooftop bars/lounges.
As digital natives, millennials can easily adapt to the fast-paced world of technology especially in investing whether real estate or crypto, where the answer to pretty much anything can be found with just a few taps on their phones. This ease-of-access mindset is evident with whatever they do. When it comes to the use of digital media, millennials spend hours daily interacting with media in some form, whether it’s watching videos, browsing through online content, engaging with social media, reading articles, or listening to music or podcasts.
Read Also: Real Estate Tips for Millennials
As a result of millennials’ active social media use, they usually post about their home buying search throughout the process, which may come in the form of videos, blogging, social media posts, and more – depending on their level of engagement.
Why should millennials consider investing in real estate?
Purchasing a home is an investment in a physical, inflation-protected asset that can make a huge difference for one’s own retirement later on in life.
As studies show, the millennial generation represents the largest percentage of first-time homebuyers, and financial and real estate experts are encouraging young adults to enter the real estate market.
We have listed the top reasons why millennials should consider investing in real estate.
1. Investing in Real Estate is an Investment in Your Future
While most people consider renting out as easier than buying their own property, since there are little to no obligations, it is actually a short-term expense with no real long-term benefits.
Investing in real estate, on the other hand, can be considered a good investment in the future. Think about this, as you pay down (or pay off) your mortgage, you build equity that can help bolster your retirement fund.
Paying rent only benefits your landlord. But as a millennial investing in real estate or having a home is a smarter way to invest in your future and has other benefits on your own accounts down the line.
2. Think of the Resale Value
Buying a property is said to be a sound and stable investment. Especially when you buy a property in hip areas where the market is trending up, this can increase your net worth in just a few years.
3. You’ll Get to Enjoy the Tax Breaks
According to property experts, there are some tax benefits that come along with homeownership. When it is tax time, your mortgage interest is deductible from your income tax, which can lessen your tax burden.
4. You Can Take Advantage of Low Interest Rates
Buying a home is not as expensive as you might think given the market conditions. Millennials can expect lower down payments and interest rates can remain at fairly low levels.
5. Owning a Home Can Have Emotional Benefits
There’s a certain level of pride when it comes to homeownership, which makes homeownership not just an investment in your own future but also a big source of your long-term health and happiness.
What are the advantages of condo living for millennials?
Are you thinking of investing in your own place soon, but can’t decide on whether to get a house and lot, townhouse, or condominium? We have listed down the reasons you should consider buying a condominium especially if you’re still in your 20s or 30s.
1. Enjoy great lifestyle
Condominiums feature various amenities and facilities that make independent living more easy and comfortable. If you are into workouts and regular exercise, there are gyms and fitness centers that you easily access.
Meanwhile, if you want to relax after a long, busy day, you can just lounge by the pool or take a quick dip as a way to unwind at night. You can even take advantage of some of the most unique amenities that other condominium developments have such as a game room, library, spas, and more.
2. Meet new people
Many residential condominiums, especially those that are strategically located near central business districts and university areas, are home to millennials, young professionals, and starting families.
This makes for a community where you can easily make new friends with other residents who share common interests with you. There are also instances where condo residents gather together and interact to celebrate community activities during Christmas and Halloween.
3. Design your home on a budget
If you have a compact living space, chances are it’s easier to design and furnish without breaking your wallet since you’ll only be working in a limited area. But that does not mean you have to limit your style and creativity.
Condo living gives you the opportunity to dress up your own home according to your style and preference. There are available resources online that give budget-friendly tips to get the most out of your dream home.
4. Save more money
More often than not, we consider renting as more cost-efficient than investing in our own space. But when you think about it, your monthly rent can be used as payment for a mortgage instead.
There are a lot of real estate developers that offer quality and reasonably-priced condominiums. Make sure to look for trusted developers out there who offer affordable condominiums that can accommodate your needs and budget.
Read Also: Condominium Tips for Millennials
5. Have a solid investment
Condominiums not only make for a good home but also a solid investment. When you suddenly decide to move to another location, you can rent out your property.
Condominiums offer great income potential depending on the approach that you want to take. Whether you list it through Airbnb, Rentpad, or other similar sites, there’s no denying that condominiums for short-term rentals have become a lucrative business here in the country.
6. Feel more secure
Safety and security in condominiums are tight so you don’t have to worry much about leaving your home when going for a vacation. Aside from roving guards, most condominiums require visitors to leave an ID when visiting. However, you can still reinforce the safety of your home using alarm systems.
Condominium Investment for Millennials
Millennials can easily invest in stocks, bonds, and mutual funds or save some cash in the bank but there is nothing more stable and beneficial than real estate or owning your own property.
However, millennials including young professionals or starting entrepreneurs often find purchasing a property too big of an expense and responsibility, daunting, and seemingly impossible to achieve. But not if they check out BRIA Condominiums, the country’s affordable condominium developments that are worth investing in.
BRIA Homes, Villar Group’s affordable housing brand, offers Bria Condo Vertical Villages, which are contemporary mid-rise condominium developments known for their main features: affordability, accessibility, and independence.
It is the best investment property and home for young, aspirational Filipinos who have big dreams but have yet to fulfill these. As they start building their careers and work toward their goals, Bria Condo’s prospective residents will enjoy proximity to lifestyle hubs and major business districts because of its strategic locations.
Bria Condo Vertical Villages is composed of towers that make up a sizable village, where unit owners enjoy cozy and intimate co-living in elegant walk-up buildings.
BRIA has developed more than 50 projects in the country’s key towns and cities and has earned the reputation as the Filipinos’ home of choice.
BRIA’s condominium projects are mixed-use developments, which are composed of communities where commercial establishments, restaurants, and banks are within proximity, providing convenience and easy access to its residents. It is ideal for young professionals busy with their careers because condominium units provide stress-free maintenance of living space. Aside from convenience and accessibility, residents can also enjoy access to different features and amenities such as a communal clubhouse with function halls, swimming pools and spacious play areas, and complete gym facilities.
Mid-rise condominiums like Bria Condo also take pride in having a faster turnover of its units, security facilities alongside their safe and secure community. Although seen with limited space and expansion, condominiums still remain to be a good investment should residents decide to transfer homes. Homeowners have the option to sell their unit at a higher price, or they may lease it to other tenants, making their condominium a source of revenue stream.
Bria Condo’s stylish and affordable condominium development will soon rise in four progressive cities such as General Trias, Cavite; Calamba, Laguna; Mactan, Cebu; and Cagayan de Oro, Misamis Oriental. Both Bria Condo General Trias and Calamba will feature two hectares of condominium development composed of 11 buildings, 880 units, and 237 parking lots.
Aside from the aforementioned facilities, Bria Condo General Trias will also include a provision for a school, while Calamba will have a wet and dry market and a food park within its properties. All Bria Condominium projects will be four-story walk-ups. The mid-rise condominiums will offer exclusivity and mid-density living—an ideal home base for young and hardworking Filipino professionals.As for the units, each will be 24-square-meter spaces with provisions for a bedroom, dining and kitchen area, living area, and toilet and bath.
BRIA Condo Vertical Villages are designed to be budget-friendly, space-efficient, and accessible for Filipinos who want to begin a life of comfort and success.
Written by Cheska Castro