​8 reasons buying a home & investing are smart moves for Millennials..

8 reasons why buying a home & real estate investing are smart moves for Millennials in 2016.

I know it has been covered a million plus times but for my own personal blog and my readers, I will cover why I think home ownership & investing are a great way to build wealth. In every generation there exists a time period of opportunity.  With record low interest rates still around and government grants that make it easier to purchase your first home. This is a great time to buy or invest in real estate because these rates won't last forever. Being a millennial myself who has saved money than to squander it away. I will not waste another opportunity to save for my future. I believe real estate is a great way to passively earn income. Meaning you can generate income without moving a finger, literally. This can be done with turnkey investment homes or properties you own but a 3rd party manages the property for you. We will discuss turkeys in a future blog post, but for now back to why home ownership and investing in rentals is a great idea. You will not become rich quick with rentals but slowly make money that will accumulate into a large sum over the course of time.

Here is an official definition for everyone so we are all on the same page.

An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

[http://www.investopedia.com/terms/i/investment.asp]

1. FHA Loans - With FHA loans you put down 3.5%. You must live in the property for 1 year but after this time you're able to buy another primary residence and rent out the first house.
2. Rental Property Ownership- You can purchase a house a bank will loan you the funds, while someone else lives in the house and pays off YOUR mortgage for you (as long as it's rented of course). Sounds amazing to me .
3. Passive Income - With buy and hold investing your earning time with your family. The more passive income you bring in a month the less time you have to work to acquire the same monthly income from your day job. So you can work less hours. After the property is paid off you can retire early if the monthly income can completely replace your W-2 income. Another option is to sell the property at any point during your ownership. All positive situations in my opinion.
4. Interest Rates- Record Low interest rates on loans still exist, but for how long? The fed definitely increase rate the question is just when.
5. Population Growth- People will always need housing because of population growth and the choice is either buy or rent. Rents at the moment are rising so owning is becoming more appealing .Even with moving constantly you can still own homes in different states.
6. Owning a home & rentals- Owning one or multiple homes can really boost your tax return in many ways that I cannot list in this post.
7. Stocks vs buy and hold? - Every human needs housing but not stocks

-You're protected from company owner mishaps when owning rentals

-You have more control of your rentals return than stocks

-better return on average 7% vs 10% but this is dependent on your cash on cash return. Which for the most part is a number that you can influence in many ways.

Baby Boomer retiring - Millions of baby boomers will retire in the next 10+ years this will leave an influx of homes on the market for millennials to buy because many boomers will be downsizing and/or moving to other means of housing.

I hope you like our second post and learned a little and took something away. In the future I will elaborate more on specific ways to invest in real estate.I hope this blog has been helpful and informative to all. Thank you believe in yourself and never stop dreaming...