Dubbed as the most mobile and transitional generation, millennials are known to be quite averse to staying in one location for long. They are also well-traveled, both for work and leisure. These young professionals can also work just about anywhere: in coffee shops or at the comforts of their own home. Because of the freedom to locate wherever they prefer, renting is perhaps the most suitable option for this age group.
But is it really wise to dedicate a huge part of your monthly paycheck in filling your landlord’s pocket? Global real estate portal Lamudi Philippines shares why investing in property is one of the best ways to build wealth for this young and adventurous generation.
Real Estate for Income
The financial burden of investing in a home is not appealing for people who see themselves moving in the foreseeable future. However, it should be noted that getting in the real estate game does not necessarily equate to settling in the space you just bought.
From an investment perspective, buying a property can provide additional cash flow. If you are leasing a costly apartment each month, you understand the woes of giving away your hard-earned cash to your landlord. However, imagine if the tables were turned and you become the property owner who rakes in passive income every month. Sweet with no sweat, isn’t it?
Purchasing a property is a big investment decision, but for young professionals who have capabilities to acquire a piece of land or condominium, buying will surely reap exciting returns in the years to come. Real estate is a tangible asset that increases in value over time. Aside from the rental income that you can get, you can also enjoy a sizable amount when you decide to sell after the property’s value has increased.
However, if you decide to keep the property and just enjoy the rental income, having a property under your name also means that you are assured of a place of your own should the need arrives. Furthermore, it may also serve as your retirement home when the time comes.
Home You Can Call Your Own
Your very first step to your own welcome-home mat is an overwhelming feeling. This is especially true if you have secured the keys at such a young age. But beyond the fulfillment, obtaining a property while you are young has many advantages.
For buyers who take this step earlier in life, you can avail longer loan durations to keep your monthly amortizations low. At this rate, the amount you are paying for rental fees may be much expensive that your would-be monthly amortization if you invest now.
Homeownership is also a significant indication that you are moving ahead in life. For some, it is a status symbol that signals stability and commitment.
As investment is such an empowering achievement, more and more millennials are now exploring home-buying. Because of this, a myriad of newly launched developments now take into consideration the lifestyle of Generation Y. Amenities and facilities are carefully planned to ensure the convenience of young buyers.
The fast take-up of these millennial-focused properties is proof that the young generation now appreciates the value of owning a home. This is more economical rather than allocating a big chunk of salary each month for rent that will never add to any future equity.
Choosing a viable location is important too. For young professionals who work in major central business districts, there are suitable properties in neighboring areas that offer the same convenience but a more competitive price. So instead of renting, you can just invest in a nearby location and walk to work.
Lamudi Housing Fair 2017
To fully appreciate the edge of investing early, millennials are encouraged to head on to the next installment of the Lamudi Housing Fair this year. Slated to happen on October 13–15 at the Megatrade Hall 1 of SM Megamall in Mandaluyong, the event will feature investment experts that will talk about investing for everyone.
The Lamudi Housing Fair will again bring together the biggest developers and the coolest real estate offers in one venue. Freebies, exclusive discounts, and prizes also await attendees.
For more information, visit www.lamudi.com.ph/housing_fair