A recent survey from Bankrate reported that 36 percent of millennials prefer investing in real estate over all other options, including the stock market, cash investments, and cryptocurrency. According to Business Insider, the generation is also responsible for the largest share of new mortgage loans. Here’s why millennials are betting on real estate, and you should too.
Unlike stocks, which can completely lose value, or cars which depreciate in value over time, real estate stays valuable no matter what. Because it’s a tangible asset and completely in your hands, you have the power to improve its value over time through repairs and renovations. That’s a huge benefit compared to the stock market, which is entirely out of your control and incredibly volatile.
In buying a home, you will never lose the full value of your investment and you’ll enjoy a rare kind of investment flexibility. Buy earlier on in your life, and not only will the value of your home increase over time, but the risk of loss will decrease the longer you hold onto it. That means the window for building equity is wide open.
There are many practical benefits to owning a home as well. You can leverage a real estate investment for cash, and you can claim a mortgage deduction on your taxes. What’s more, real estate is a great opportunity to find extra cash flow. If you invest in the stock market, you don’t see that money again until you sell. But if you invest in real estate, you can rent out the property to bring in a new stream of monthly income. That can be a huge help when it comes to the expenses of owning a home, repairing it, and paying off the mortgage.
With surefire ways to see a return on your investment, relatively low initial costs, and the potential for a lifetime of memories, buying a home now is a strategic and exciting thing to do. Plug in your numbers to this Rent vs. Own and see what kind of investment it can be for you.
