Homeownership Doesn’t Have to Be Out of Reach.
Contrary to popular belief, millennials are not the renting generation. According to the 2022 Consumer Insights Report from Mynd, there is a section of millennial and Gen Z purchasers who are seeking homeownership as a method to develop their wealth; however, it may not be precisely the same manner that prior generations have gone about accomplishing this goal. The following strategies are outlined in the report for penetrating the market:
"... older generations of Americans have bought into that idea in a manner that younger generations do not." A rising number of people in the United States are deciding to make their first investment in real estate in the form of an investment home.
Some younger purchasers are choosing to invest in real estate to lease it out to tenants rather than live in the property they purchase for themselves. This strategy may be gaining favor, partly because of the difficulty associated with affording a home in today's market, which is caused by increasing mortgage interest rates. The study that was just presented mentioned how many individuals in this group are considering pursuing this strategy. It says:
"Only 9% of Baby Boomers and 27% of Gen X are contemplating purchasing investment property, but 43% of Millennials and Gen Z are exploring purchasing an investment property."
Why Younger Buyers Are Purchasing Homes to use Them as Rentals
Buyers can continue living in their present area, whether it be the hustle and bustle of a city apartment or a neighborhood they already know and love, even if they cannot purchase a home there because of this technique. But instead of giving up on owning a house, they buy a property in a location where housing is more reasonably priced to rent.
They are, in a sense, enjoying the benefits of the best of both worlds. They can live anywhere they desire and own a house in an area where they may comfortably do so.
Their objective is to build a passive income stream while diversifying their investments. The way it works is as follows: not only will they have a source of income from renting out their property, but the equity they build up in their home will also assist their net worth rise over time.
Let's get in touch if you're considering purchasing a house as an investment method to enhance your wealth. We can discuss your available alternatives and local neighborhoods that could offer properties that are a good match for your needs.