Why are More and More Young People Investing in Real Estate?

You’ve got to hand it to Millennials. When they see a good opportunity, they act on. And that’s exactly what they’re doing with turnkey investments. This age group, or those born between the early 1980s and late 90s, make up a growing percentage of the home buying populace, and notably where investment buying is concerned. So what gives? Why is this generation so hooked on turnkey investing?

Building Wealth Through Real Estate
There are a few factors that seem to be driving Millennials toward investment property. One of the more obvious reasons is the financial gain that real estate can provide. This generation is way into financial security, which is no surprise since they lived through the Great Recession of the mid-2000s, experienced the burst of the housing bubble, and are drowning in student loans. Millennials want to bolster their bank accounts, and they’re taking any chance they can get to build their wealth and ensure the comfortable lifestyles they’re accustomed to. Fortunately for them, turnkey investments provide that avenue.

Non-Traditional Homeownership
Another factor behind this growing trend is that millennials are using these investments to delay the responsibility that comes with traditional homeownership. This probably sounds a little contradictory to what we just outlined above, so let us explain. Owning a home requires a huge amount of responsibility, both financial and otherwise. When you own and live in a home, all of this responsibility falls on you. However, when you own an investment property, some of that responsibility is shifted, and that home is making money for you. And when it’s a turnkey property? It’s generating valuable income AND you aren’t required to be actively involved, yet you still get to be a homeowner.

Short-Term Housing, Long-Term Income
While some people buy a house with the intention of using it as a rental property from day one, others take a different approach. It’s common for many millennials to buy a house in a good rental market, live it in for a while, and then rent it out for income when their housing needs change. This is a great strategy for young people who don’t plan on living in a certain area long-term, but they realize the income potential of the home and neighborhood they’ve bought into.

What Millennials Need to Know Before Investing
Investing in turnkey properties isn’t for everyone, and it takes time, patience, and practice to become a truly successful real estate investor. Before jumping into this venture, you need to arm yourself with the right information. Talk to older, more experienced investors to get insight, and spend some time researching potential housing markets and properties. Outline what your plans are, and how you envision your investment impacting your life. When you’re ready, contact a reputable turnkey investment company that can help guide you through the process of real estate investment.