Millennials and Investment: How the Next Generation Looks at Wealth

Updated: December 16, 2020

Those born between the early 1980s and 2000s are today’s Millennial generation. They are said to be the largest, best-educated, and most diverse generation. They’re open-minded, confident, self-expressive, and receptive to new ideas and ways of living.

However, they are also often seen as financial risk-averse, who are focused on near-term goals and consider cash as their long-term investment.

While earlier generations focused more on building wealth, millennials think more about themselves, their lifestyle, and finding a purpose in life. They have a different perspective in terms of financial success, which is driven by their self-sufficient ambition and entrepreneurial spirit.

Millennials are indeed serious savers, but they’re reluctant to invest for the long-term.

Changes in the Millennial Mindset

Condominium developer, Vista Residences recently held a webcast entitled, “Investment Lab: Millenial’s Guide to Real Estate Investing”. During the episode, several factors that stop millennials from investing were mentioned, as based on a Focus Group Discussion (FGD) conducted among them. These are the fear of long-term commitment, fear of letting go of non-essentials, and family obligations.

Before the pandemic, millennials resist investing and instead favored low-risk savings account and term deposits. However, new reports suggest that the pandemic pressed millennials to take a hard look at their spending habits. Their priorities have changed, they created forced savings because of postponed trips, and work from home has become an option for many.

Most millennials saw the economic downturn as an entry point into the world of investing. They have become fully aware of the need to make an early long-term investment to improve their financial security.

Investing in Real Estate

If you’re a millennial looking for a more stable investment, here are some reasons why investing in real estate is the best option to take.

1. Source of Passive Income
Real estate can provide monthly rental earnings. Moreover, its value can also appreciate passively and allow you to sell it in the future, and perhaps give you capital to purchase additional investment properties.

2. Flexibility and Control
Real estate investments are flexible. You can earn passive income and/or from capital appreciation. Also, you have control over how your investment properties can meet your specific needs and help you achieve your financial goals.

3. Option to Use
Unlike stocks and other paper assets, you can use and live in your property if you want. You can use it for your own purpose while you do a buy-and-hold investment strategy.

If you invest in the right place, with the right location and appreciation rates, you can practically retire before you’re fifty. That means less time in the office, more time doing the things you want!

The main reason why most millennials get it wrong is that they are investing for the short-term instead of the long-term. There is no time like the present for millennials to join the ranks of savvy real estate investors.

Getting Started with Real Estate Investing

According to the said webcast, there are simple and easy ways to jumpstart your real estate investing.

These include drawing up a dream board or listing down your goals and timelines for these milestones. Then, it’s time to organize your finances, to spend less, and invest more, which includes looking at possible real estate investments for their price, location, developer, and amenities.

Once you identify the property that you would like to invest in, then perhaps it’s time to take that leap of faith. There will be sacrifices to make, but be confident that your investment will certainly make up for it in the future.

If you’re looking for a good real estate investment, then check out Vista Residences. They currently have ready for occupancy and pre-selling condominium projects in Manila and Quezon City, which are strategically located and adjacent to premium universities and developed business districts, making them worth investing in.

You can choose from its ready for occupancy projects in Manila such as Vista Taft, Vista Heights, Vista GL Taft, 878 Espana, and Crown Tower University Belt. Or pre-selling projects which include Orwell Heights, Plumeria Heights, Tennyson Heights, Bradbury Heights, and Sky Arts Manila.

Moreover, it also has move-in ready projects in Quezon City which include Wil Tower, Symphony Towers, Pine Crest, and Vista 309 Katipunan. And pre-selling projects in the same city such as Hawthorne Heights and Vista Pointe.

To know more about Vista Residences, visit www.vistaresidences.com.ph, or follow @VistaResidencesOfficial on Facebook.

Disclosure: This article is written in collaboration with Vista Residences

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One comment

  1. Beautiful Bride was born in 1981. I guess she qualifies her as a Millennial. From the beginning of our relationship, I perceived how super risk adverse she is. Before our marriage, my wife refused all offers of partnership to help her build out her various business ideas. She explained that she did “not want to be responsible to anyone for money lost if she made mistakes.” BB is well educated and had always earned far above average money witch she used to support three children and to help other people.

    Even long after our marriage, my wife still wants nothing to do with my night gig of cash flowing my stock and ETF portfolios by selling call and sometimes put options. I earn regular income from this but still my wife will not participate, She explains that she “can not handle those down days when many positions are printing red. ” It does not matter to her if short options are ticking away losing value that goes into my pocket and they partially hedge long positions. All she sees is the red ink.

    The good news is, my wife had great business ideas. After our marriage, I suggested she use a very small amount of money to do a test run. Finally, she took on a small risk!!!. I showed her clearly that even if she lost the equivalent of one of my retirement checks, it will have no significant effect on us. She relented and did the first test run a tad over three years ago. I was sure that even if her idea failed, she would get back most or all of my capital. The rest as I have said before is history. These days, my wife still will not touch my night trading gig but she has truly become a serial entrepreneur, saving up a bit of capital and launching business after business. Some of her ideas have great potential to generate passive income in the future when all of the modules are completed and the work is done.

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