There are plenty of ways to invest one’s hard-earned money. Bonds, mutual funds, and equity stocks continue to be a common type that the new retail investors venture on. Investment in the form of commodities remains to be a viable option for portfolio diversification. And of course, the ever so dependable, real estate investment. The real estate market is still very much diversified in terms of its portfolio, from residential real estate market to condo investment. The millennials, the middle-aged population, and retirees all share the common interest to invest in residential properties – and their top choice? Condominiums. We will be discussing the reasons as to why millennials choose to invest in Condominiums.
In this modern and digital era, the availability of social media tools and platforms makes it particularly attractive for millennials to be more comfortable in learning and venturing in real estate investing. Generally speaking, millennial real estate investors see a greater potential return on investments from passive income than the stock market.
Aside from the horizontal segment, condo market to be exact is projected to rise strongly until the year ends. Yes, the pandemic halted the construction of projects but as the restrictions eased, construction resumed and the completion of units almost quadrupled in Q1 2021 alone. With these increasing trends and projections, condominium investments become more and more appealing for the young professionals e.g millennials.
By mere definition, millennials are already aged between 25 and 40 years old already. At this point in their lives, they now are becoming the driving force of the nation’s labor economy and have the financial capacity to start buying their own homes or investing in real estate properties. With their current financial standing, recent reports show that millennials are opting for condos over house and lot in the property market. In this article, we explain the possible reasons why.
1. Accessibility to Their Wants and Needs
The millennials belonged to the age group that primarily saw the rise of the internet and technology. Due to that, they have the means and the access to pretty much everything they need to know and acquire. Naturally, owning a condominium enables them to continuously practice their ways of convenience. Condominiums are generally located in areas that are accessible to establishments that provide their basic needs. Instead of choosing to live in a residential real estate property that is typically hours away from their desired destination, residing in a condominium unit eliminates all the troubles that commute bring, thus, the accessibility to the millennials’ needs and wants.
Accessibility is one of the first few reasons why Millennials invest in condominiums. Having everything at the palm of your hand just makes everything a lot easier and time saving too!
2. Less Maintenance
As industries for young professionals continuously emerge, millennials see the need to be always on the go and be productive at all costs. This means less time staying at home and even lesser time maintaining it. Condominium units are perfect for millennials who are in need of spontaneity as they are not responsible for the overall maintenance of the building. Less space to maintain seems appealing for the millennials as this is one of the viable reasons they reside and invest in condos instead. Millennials investing in condominiums is also a way for them to save time and money on costly house maintenance.
3. Less Space
As mentioned above, less maintenance seems appealing for the millennials. The “less maintenance” part is also due to the fact that condo units typically hold a smaller floor area, making it possible for a more minimalistic home design.
This setting is perfect for single family dwellings. Studies show that millennials were already putting off the idea of having children even before the pandemic hit. A little more than half of childless millennials say a reason they don’t have children is that they want to focus on their careers. These people are clearly perceptive in the thought of living alone and independently. Less living space just seems more reasonable for the millennials who won’t be starting a family soon.
4. Upgraded and Exclusive Amenities
Let us accept the fact that a residential subdivision with a swimming pool and all the nice amenities isn’t suited for all home shoppers. One can probably find these amenities in an upscale subdivision located in a suitable location with an outrageous price tag. Sure, there are some subdivisions with nice amenities but it doesn’t equate to exclusivity. Condo projects on the other hand generally comes in standard with all the deluxe amenities. A swimming pool come summertime and one would like to take a dip? Check. A fitness gym to keep oneself healthy and fit? Check. A play area for owners with little children? Check. These are just some of the exclusive amenities that condo unit owners enjoy. Exclusivity and luxury condo living are some of the factors that condo residents can enjoy. This is one of the reason why owning a condo unit is more appealing for millennials.
Condominium living is more than just the social status that it suggests. Condo living can be a manifestation of independence, ambition, and lifestyle. These are the things that millennials look for thus they choose to invest in a condominium project. It isn’t a coincidence that these are some of the traits that millennials carry. The younger working-age population constitutes 36.5 % of the total population (2010 Census). Consequently, this age group is where millennials belong. Millennials now have the power and capacity to purchase and acquire their needs and wants at a very competitive prices. In the event that a condominium unit is what they desire, there just aren’t too many reasons to think otherwise.