From first-time homebuyers to new investors, younger generations are discovering that real estate can be a great way to build future financial security. Your first home purchase can open up doors to a lifetime of investing.
Many seasoned investors are encouraging younger generations to start investing in real estate as soon as they can. Unlike other forms of investing, real estate can be incredibly lucrative and not subject to the same volatility as stocks. Plus, if done well, investors can create comfortable living situations for themselves while earning a steady income.
And the good news is, it's not difficult to get started. As a young investor, there are a number of government programs to help younger generations get into real estate, along with other creative options you can pursue. Let's look at both in turn.
Programs and Incentives for Millennials and Gen Zers
Government programs of all kinds can help young investors get started. For instance:
- HUD makes real estate ownership easier for young people by providing relief from student loan debt. This means that younger generations can put more of their savings into getting a home.
- The government just canceled $40 billion in student loans, so younger generations can now have access to real estate. They are also hinting at trying to do more.
- If you are a first-time homebuyer, you have an opportunity to take advantage of FHA incentives to help you with that purchase, along with various state-based programs.
Other Ways Younger Generations Are Investing
Government programs aren't the only way to get into real estate. Here are some popular trends among younger investors:
- House hacking has become extremely popular among millennials and Gen Zers. Renting out rooms or portions of a primary residence can offset mortgage costs. This applies to single-family homes as well as multifamily units.
- Generational co-living and investing are also on the rise. Parents and other family members combine their assets with those of their younger relatives to invest in real estate.
- Younger real estate investors may be especially creative as they look at real estate investments. For example, many retail spaces with flexible zoning have now become available. New investors are looking to create co-working/co-living environments, combining residential space with entertainment and convenience businesses.
- Millennials and Gen Zers also grew up in a "sharing economy" and will be adept at pulling together investor groups and using technology to source new projects. Some crowdfunded real estate investment groups start at only $500, making real estate accessible to even the youngest investor.
From Homebuyers to Investors
As these younger buyers continue to get comfortable owning their own real estate, the concept of investing in real estate as a side gig or primary source of income becomes more attractive. And, if you're in that age bracket, you should learn as much as you can about buying a home and consider using some of the money you may have saved during the pandemic to put down a down payment or invest.
To help you take it a step further, resources like the PropStream Academy are geared specifically for new investors, helping you use technology to find off-market deals and avoid common pitfalls. The course covers essential investing strategies, from wholesaling to how to run sales comps. If you don't have a lot of money and still want to get into real estate, wholesaling is a good first step, and the Acadamy can help you get started.
How Can Younger Investors Take Advantage of Opportunities?
Because younger generations are passionate about real estate investing and technology, they will be using platforms like PropStream to their full advantage, researching deals and transacting with record speed.
But regardless of generation, one thing holds true. Knowing as much as you can about geographies and property trends will ensure that your investment dollars are well spent.
That's where The Propstream Academy comes in. Not only does it accelerate the learning curve for new investors, but it also gives them access to a next-generation, big-data resource to find the best opportunities long before traditional investors can find them.
