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4 Reasons Millennials Should Invest in Real Estate Now

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Reasons Millennials Should Invest in Real Estate

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If you’re born between 1982 and 2004, then you’re a certified millennial. Whether you’re now in your mid-20s or late 30s, this is the age in which you may be establishing your career or managing a business to your name. This only signifies that you now have the means to go into the investment market, which is a great way to grow your fund and assets.

Even better is the fact that you have a whole range of options on where to put your money, one of which is real estate. As a traditional form of investment, real estate provides you with tangible property assets that you can acquire at a cost you can afford, especially now that home prices remain quite steady. With that said, real estate can be a good investment option that you should explore in these times.

Here are more reasons why your generation of millennials should invest now, with a special focus on real estate:

1. Real estate serves as a source of passive income

Passive income refers to the money you earn even if you’re not working for it. It’s the opposite of working in a 9-to-5 job, where you get paid every 15 days or so, depending on the compensation method in the company you work for.

With passive income, you’re able to generate money in the form of rentals. You could buy a home or a building and rent it out to other people or companies who can’t afford to buy their own property yet. You may dictate how much rental fee you’re going to charge to your tenants, especially if your property is located in a strategic place, such as those near schools, hospitals, or commercial centers.

Month after month, you just wait for your income from rentals, making real estate really helpful in giving you return on investment (ROI).

2. Buying real estate offers more practicality than renting a property

Owning a home is the goal of every worker or entrepreneur. Needless to say, you can’t accomplish this goal if you choose to rent a property since there’s no way it will be yours even after a long time of paying rent. Instead, it’s your landlord or the property owner who benefits directly from your monthly rentals as they get to keep the money, month after month and year after year.

Nowadays, you can choose from a wide variety of housing options – from bungalows to a townhouse or condominium – depending on your needs and resources.

For instance, one of the benefits of condo living is that it is in tune with your busy lifestyle. As such, you’ll find that most condominiums house physical fitness centers, convenience stores, retail shops, and other one-stop service establishments within the building premises so that you don’t have to go far to get the things you need.

You also get to save a lot of money this way since you don’t have to spend on transportation costs, such as fuel, parking fees, taxi fare, and the like.

3. The country’s thriving economy puts premium value on real estate investments

When you invest, you expect to get some returns out of it. With real estate investments, the ROI can come in several ways. Earlier, it was mentioned that renting out your property is one form of income generated from real estate investments.

What you should also know is that you can get so much value from buying real estate now, which is the time when the country’s economy is growing alongside its Asian neighbors. Investors are coming in because the Philippine government is going all out on developing infrastructure like roads, bridges, airports, and so on.

With business investments contributing to the growth of the Philippine economy, real estate developers take it as an opportunity to attract people into buying properties by offering good deals. By investing in real estate now, you can look forward to the value of your property increasing in no time.

Waiting for a couple of years may be costlier since market conditions are dependent on a country’s economic performance, which is something you can’t control or predict on your own.

4. Real estate developments are designed for millennials’ preferences

Buying a home space isn’t only about fulfilling the basic need of having shelter. At the end of a long day at work, you want to be able to come home to a place where you can rest, relax, and enjoy.

Fortunately, many real estate developments today consider these things. From the floor layout to the aesthetic design and safety engineering, you’ll find that many properties for sale are suitable to your standards. You don’t have to spend a lot of extra money to spruce them up because they already look and feel great from inside out.

Final Words

As with any investment, you first need to study your options carefully when buying real estate properties. The key is in setting your goals and then coming up with a strategy that can help you reap the benefits of investing in real estate.

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