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