The word on the real estate street for millennials has been uncertain for many years. Owning property for this generation has often been deemed impossible due to the economic hardships accompanying a depressed job market and increasing property prices. However, millennials are still optimistic that real estate is considered the best investment for long term financial success.
As defined by LiveScience, the term millennial refers to the population born between the years 1982 to 2000. This generation cohort is also referred to as Generation Y (following Generation X), and Peter Pan or the Boomerang Generation. In relation to the real estate industry, the purchasing interest of millennials has remained high despite the trials with the current market. In fact, in 2013, the Toronto Star reported that 80% of millennials wanted to be home owners. Since then the percentage of ambitious millennials has increased. The Canadian Press presents figures from a poll conducted in March (2017), that now 86% believe that home ownership is important.
Advice for Millennials: Invest!
Globe and Mail writer, Dianne Maley presented expert advice for millennials interested in capitalising on property. Josh Miszk, vice-president of investments at Invisor of Oakville, advised that having a diversified portfolio helps support a long-term financial foundation. Banks have also been known to entrust loan payments to home buyers more so than for other investments, according to Inquirer.net. Millennials seem to share the same mindset, with polls also showing that 63% believe home ownership will help build equity. Amidst the uncertain market, the following two benefits of owning property remains.
Benefits of Home Ownership
- Rent Vs. Ownership – If a first-time home buyer (Millennial) is looking to move out, a rising housing market may persuade them to rent instead. The idea of a monthly flat rate and the removal of other property fee’s may seem easier and perhaps more affordable or manageable. However, renting property doesn’t add value to a financial portfolio, nor does it allow for a return on the money being invested into the property.
- Return on Investment (ROI) – In a market with prices on the incline, millennials who invest in property are assured that their investment will continue to incur profit. A rental property can be a great alternative for first-time home buyers who are looking for help carrying their long term asset.
Millennials may be as a generation faced with economic hardship. However, they are also a cohort of forward thinkers. The diversification of an investment portfolio has been a recommended asset to secure long-term stability for all generations. For Millennials looking to purchase their first luxury apartment, considering the benefits associated with property ownership is important. Hazelton Real Estate is an expert in the Toronto real estate market and can help connect prospective home buyers with the right investment property.
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