Why Millennial Real Estate Investors Are on the Rise

Why Millennial Real Estate Investors Are on the Rise

Previously, older generations used to save up their money to buy their houses and invest in the stock markets. Millennials on the other hand, decide to rent instead of purchasing a house. Many Millennials decide to rent instead of buy because of the large amount of debt that they have. Instead of taking on more debt, Millennials decide to forgo a mortgage.

A popular trend that we are seeing within real estate is that older generations are selling their homes ad renting apartments or condos while the younger generation, the Millennials, are continue to rent and invest in real estate properties. In this blog we will take a look at why millennial real estate investors are on the rise.

Millennials are the most populous generation in the United States.

The Millennial generation is the group of people born between 1982 and 2000. With over 75.4 Millennials in the United States, they have have the greatest impact in housing market shifts. This is why it’s important to understanding Millennials’ real estate and investment strategies.

Millennials are skeptic about the stock market.

Many of Millennials believe that real estate investments have a better return than investments made in the stock market. A lot of Millennials have this mindset because many of them were in college during the 2008 recession and found it challenging to find a job. Back in 2007, over 65% of Americans were investing in the stock market. Today, half of that percentage has left the stock market and is instead investing in real estate.

Real estate is on the up and up and Millennials have noticed.

One study shows that 86% of Millennials are planning on buying a house one day even if they are renting now. Some Millennials are known for being entitled and lazy, but they are actually pretty savvy investors. In general, they are producing a greater return on their investments. Millennials have been able to identify areas of population and job growth and track real estate market areas that are on the rise.

Millennials are investing in real estate online.  

In recent years, there has been an increase in crowdfunding investments. Online crowdfunding lets anyone invest in real estate for a smaller initial investment. A lot of crowdfunding companies will require an initial investment of anywhere between $500 to $5,000.

One of the benefits of investing in real estate online is that you don’t have to deal with the hassle of being a landlord. Usually the crowdfunding or syndication companies will outsource property management.

Best Places for Overseas Real Estate in 2020

Best Places for Overseas Real Estate in 2020

If you are looking to invest for the first time overseas or if you are looking to expand your foreign property holdings, but don’t know where to start, I can help. I’ve gone ahead and collected the best places around the world to invest your capital for the year 2020.

Panama

One of the very best places to invest in real estate this year is Panama. In Panama there are many apartments you can purchase for rental opportunities. Thanks to neighboring country buyers from Argentina, Colombia, and Venezuela, Panama City’s market has remained stable and has grown quite well over the course of the decade. The same can’t be said for many other markets in this region, where some have struggled or even collapsed.

North Americans as well as Europeans are investing with Panama but Panama has recently forged a new relationship with China. This relationship has the potential to fuel the economy and make it soar. In the 1990s, many Chinese helped to grow the Vancouver economy and it is expected that they will do the same for Panama City. This will cause Panama City’s property prices to grow as well.

Brazil

Brazil is a big country that has many different property markets. In 2020, focus on the Fortaleza area. Fortaleza is located along the coast and is big tourist attraction. Rentals that focus on the local holiday marker are said to earn more than 8% net yield reliably.

It’s best to look for investments along the beachfront, you will find that many of the prices are great bargain.

Thailand

Thailand is known for their agriculture as well as their strong economy and expanding tourism. In 2018, Bangkok was one of the most visited cities in the world, ranking above London and Paris. It being such an attraction to tourist easily grabs the attention of investors.

The one downside to investing property in Thailand is that there are restrictions put in place on how foreigners can own property. Under most circumstances foreigners are only able to own land leasehold. Although this is seen as a setback, there is some positive news. Foreigners are allowed to own condos freehold, as long as they don’t own more than49% of the entire condominium complex.

Due to this leeway, the condo market has many foreign investors. While a condo may not be your first investment choice, it may be a blessing in disguise. Compared to an individual property, condos are cheaper and easier to mange. You won’t have too many issues managing these properties if you are across the world.