It is said that the Millennial Generation are categorized as people born from 1981 to 2000. I am not the kind of person to place labels on people and don’t see how any of this ever even gets started but it does. I myself fall just outside the millennial category am considered the last group of Generation X. My fiance is a millennial and as a matter of fact, most of my friends are “millennials”. I love millennials!! But what is all the fuss about millennials this and millennials that? We are all just people born in different times so of course we will think differently based on the environment we grow up in. We are products of our own environment.
As an investor and passive income seeker, it is very hard for me to not take notice of all these articles and news sources indicating that millennials prefer to rent as opposed to owning homes. This is obviously a generalization as I already know plenty of millennials that own homes but apparently, the masses of this generation would rather rent. Ding, ding, ding! Hello, this has opportunity written all over it. If this generation prefers to rent, then lets give them what they want and make some passive income.
Investors should be jumping for joy knowing that they can buy rental properties and have a huge group of people across the country that want to rent and may continue renting for the rest of their lives, who knows? I currently have 5 rental properties and my intentions for investing in real estate had nothing to do with millennials but I do feel better about my investing strategy and feel really good about continuing to buy rental properties because of this information about millennials. This is great news for landlords!
Reasons Why Millennials Do Not Want To Buy Houses: (According to this article from the huffington post.)
- They prefer to be mobile and easily move around based on jobs.
- They have too much student debt
- They have spending anxiety.
Rent.com seems to think that this generation prefers to rent because it offers them more freedom. And this article found on Business Insider just thinks that millennials don’t care about owning anything. Whatever the reason is it doesn’t really matter to me. I can see how renting can be more desirable than owning a house and I can see why owning a house might be more desirable then renting. Its apples and oranges really. Both are great, different and healthy for you. There is no wrong way to live and pay for housing but there are ways to capitalize, generate cash flow and save money based on your living choices.
How Investors Can Benefit From The Millennial Generation
EASY!! Buy rental properties!
- Rental demand is stronger now then it ever has been and regardless of what happens to the economy, there will always be renters. The fact that millennials prefer to rent is just icing on the cake.
It’s as simple as that folks. We are living in a great time to be able to take advantage of the rental market situation and it would be a shame not to take advantage of it. There are plenty of places out there that still have a great price to rent ratio’s and you can make significant cash flow from day 1 of purchasing. The last 4 rental properties I bought were all cash flowing from Day 1 and hopefully my next 4 will too! And by then, I just might be financially free which is all I really want. If you are afraid to invest in real estate, you might want to look into a turnkey rental property. It’s probably the easiest way to get in the real estate investing game.
When life gives you lemons, make lemonade!
Lemons = Millennial Renters
Lemonade = Rental Properties