As millennials consider investing in real estate, there are things they can learn from previous generations to improve their chances of choosing sound property investments.
1. Real Estate Often Outperforms Other Investments
Having been raised in or having just entered adulthood during a major recession has made millennials careful investors. However, this caution can restrict them from jumping into real estate investing, which would be a mistake, considering that real estate investments have outperformed other investment types, from stocks and mutual funds to investments in gold.
The continual high investment value of real estate makes sense once it is fully considered. For instance, while other investments such as stocks and gold only have the value we attach to them, property will always retain a certain amount of value.
So, cautious millennials who are weighing their investment options should move real estate investment toward the top of their list if they want an investment which will retain a baseline of value.
2. Rental Properties Can Provide Security
Beyond buying a home to live in, millennials should consider investing in rental properties for greater security. Older generations, such as the Baby Boomers and the Silent Generation, are finding that retirement staples such as Social Security and pensions are not as stable as they believed they would be. So, by the time millennials reach retirement, their options may be limited without making strong investment moves.
By choosing to invest in rental properties while they are still young, millennials can start building strong savings and continue to have income streams from those rental properties once they reach retirement age.
3. An Experienced Real Estate Agent Is The Best Tool For Making Property Purchases
Before jumping into real estate investment on their own, millennials should seriously consider how an experienced real estate agent can help them with their purchases. While it is possible to find a property online and conduct the purchase, there are significant benefits to working with a realtor.
- An experienced realtor has in-depth knowledge of the market they work in and can help millennials make informed decisions on the areas they are looking to buy, how often the property has been on the market, and other insights.
- Working with a real estate agent allows millennials the ability to have confidence in their realtor’s commitment to their best interests. Negotiating with a seller without a real estate agent can be tough, as it is hard to know if the best deal is being achieved. With a relator’s help, millennials can make their investments with assurance.
- Choosing an experienced real estate agent to work with also unlocks the ability to work with other experts connected with the homebuying process, such as mortgage professionals to home insurance agents, as an established realtor will be able to recommend other quality professionals.
If you would like assistance with investing in real estate in Park City or selling properties, contact Jensen and Company. We look forward to applying our years of experience and industry knowledge to your new endeavor.