Millennials have revolutionized all professional sectors by innovating with their ideas and thinking of enjoying life (here and now) rather than securing their future. This is why the real estate market has felt this income of the new generations.
Whether you consider yourself a millennial or not, if you are between 20 and 35 you are in a very important period of life and the decisions you make today can determine the quality of the years that await you before and after retirement.
Yes, it is still far away, but the truth is that time flies and every year counts. And being honest, investing in real estate is really a good idea as average rent in Seattle and other areas are skyrocketing these days.
These are 4 proven facts of real estate investment:
- 8 of the 10 most profitable investments in the country are related to land or investment property.
- The capital gain of real estate can reach up to 685%.
- It is an investment that offers great long-term performance. It is also much safer, without too many risks that may affect your assets.
- If you are thinking about starting a family or you already have it, real estate is a trustworthy asset that will undoubtedly benefit your loved ones in an increasingly closer future.
Here are some tips to help you prepare your next real estate investment:
Have a good credit history
Make sure your credit history is good, as it will facilitate access to credit. If you do not have an account yet, open one and keep up to date with payments.
Try to pay above the minimum and below the financing limit. Avoid purchases as much as possible and it is also advisable not to pay with credit card products of the basic basket.
Save, save and save a little more
If the idea of buying a residential lot calls you, you should pay close attention to ant expenses, at the same time that you build a good credit history.
Banking specialists recommend that you have a saving of at least 10% of the value of the property you want to invest in. If you count on it, you will have greater possibilities of financing.
Invest in used housing?
If you are looking to invest in a used house it is necessary that you have specialized real estate advice, since many legal aspects of any property that has passed through more than one owner must be verified.
It must be checked that everything is in order as well as that the conditions of the property are optimal, especially in regard to electrical installations, plumbing, etc. Take into account that you must cover all those unexpected maintenance expenses.
House or apartment?
Beyond the price, the most important consideration you should take into account between buying a house or an apartment is the location.
In many cities with high population rates, apartments have become a good option. Some people prefer to sacrifice some space to have an apartment in a suitable urban position or growing in surplus value.
Again, you should consider the maintenance expenses, if you will live in the property or you will give it in rent, what is the expectation of medium and long-term yields, etc.
Investing in land, especially around cities with large growth, has become a viable option, very stable and avoiding risks that do not depend on you. According to urban growth, in a short time some areas will arouse great interest among real estate investors.
If you are between 20 and 35 years old, you have a longer term to obtain interesting returns. In addition, it is an ideal investment for millennials who keep money in the bank, which is losing value due to factors such as inflation or the inevitable passage of time.
It is also an accessible investment whose surplus value is assured and increases without you moving a single finger.
The risk is much lower considering that other types of investments that – at least this year – will be subject to many factors that have to do with politics. When investing in land, these situations will not be a danger to your investment and you fulfill the objective of protecting your money.
Invest with your feet on the ground
Between 20 and 35 years old, many important decisions must be made in life and although the millennial market is characterized by a preference for rents and impulse purchases through the internet, a large percentage of this generation is already looking with concern (and occupation) towards the future.
If you have come this far, it is because you are aware that only an intelligent investment can ensure a future with much less concern and more happiness for you and yours.
Real estate is an option for this generation to prepare a future with smart decisions, invest your money and reap fruits with the peace of mind that your assets and that of your loved ones, does not depend on third parties.