A recent study by UBS confirms what most of us already knew: Millennials definitely are not reckless – especially when it comes to real estate investing. More specifically, it found that “Americans aged 21 to 36 are the most fiscally conservative generation since the Great Depression,” as evidenced by their “better-safe-than-sorry attitude,” which may be attributed – at least in part – to the ongoing stock market volatility and unpredictability they have watched loved ones cope with throughout most of their lives.
Read on to see our top 4 tips to help millennials get started with real estate investment and build a secure financial future with reliable return on investment!
1. Find an Investment Advisor Representative You Can Trust
After you decide to start investing in real estate, the next step is to find a trusted investment advisor representative to work with. He or she should know the market you’re looking at inside and out, which will help you find a property that meets your unique needs. For millennials, it’s also essential to work with someone who is familiar with your age demographic and who understands how that impacts your long-term goals, as well as your timeline for return on investment. Look for a real estate investment advisor who can provide great client testimonials to prove that he or she has a strong track record and will never compromise when it comes to integrity.
2. Start Now
Yes, right NOW is almost always the best time to start investing in real estate, but that rule of thumb is especially true for millennials, who have a longer time until retirement and therefore can really benefit from appreciation, as well as collecting ongoing investment income. Investment properties located in top vacation destinations will provide the highest return on investment, but make sure ownership also comes with a professional property management team who can handle all of the scheduled maintenance and rental requirements that come with having a profitable vacation home.
3. Understand Risk
To adequately understand the concept of “risk” as it applies to investing, first you have to develop a clear idea of how real estate compares to other investments, such as the stocks and mutual funds in your 401k retirement plan. Look at the historical data to determine how each investment might fit into your overall financial portfolio. For real estate, look at comparable home prices in the area and average rental income, as well as the health of the local property market. When it comes to risk assessment, it’s also important to point out that real estate investing offers an added level of security because it is a tangible asset, compared to intangible investments like stocks, bonds and mutual funds, which are highly susceptible to the ups and downs of global markets and can even be influenced by unpredictable current events.
4. Find Investment Properties You Are Passionate About
Everything is more fun when it’s something you’re passionate about it, and real estate investing is no exception! So instead of limiting yourself to boring investment properties in your hometown, why not venture “outside the box” and consider getting even more value from the purchase by investing in a turnkey vacation home rental that’s located in a top vacation destination? For example, Riviera Maya hotels are operating with 80-90 percent occupancy rates and demand for luxury condos and vacation homes throughout the region is far outpacing supply. This “perfect storm” makes right now a great time for buyers who want to invest in an income producing vacation home rental and enjoy proven, totally secure investment income of 8-14 percent annual ROI. Best of all, these investment properties are approved for purchase with your IRA account and offer exceptional value compared to similar properties in other top vacation destinations. The bottom line? Don’t limit yourself – the world is your oyster!
Do you have any questions for us about real estate investing? Share them in the comments!
Read 7 Reasons Real Estate Investing is Better Than the Stock Market and learn how to get proven, ongoing investment income that is not subject to stock market volatility!