Every new generation brings new trends across different fields, and real estate is no different. And, since the millennials are the largest age group so far, these changes won’t certainly pass unnoticed. Due to their different buying habits, many would say that the property market is out of reach for this generation in Australia. However, we wouldn’t say that this is entirely true, and now we’ll look at why.
Money is Not an Issue
When somebody mentions the millennial generation, the first thing that comes to mind is how they are growing up in a time when housing is absolutely unaffordable and the standard of living has dramatically plummeted. However, this doesn’t necessarily mean that this is the main reason why this generation doesn’t buy as many houses as the previous one.
On the contrary, the millennials are fully aware of what they want, and they aren’t ready to compromise on anything. So, it’s no surprise that a millennial lives in one place for only 6 years on average. However, once they decide to finally look for their own permanent place, nobody will investigate all the possible options more thoroughly than this generation. Thanks to the advancing technology, millennials can easily research the property market and find what’s truly best for them.
What Millennials are Looking For
We’ve already mentioned that millennials know what they’re looking for, but let’s see what that is exactly. First of all, they value convenience above anything else, so, don’t expect a millennial to go for a house that requires a lot of renovations. Instead, a move-in-ready will be their first choice. Furthermore, energy efficiency is a number one priority for this generation so, it’s only natural that almost 50 percent of them would opt for a house with solar panels and efficient energy storage.
Another must-have for the millennial generation is a home office. More and more people in Australia and all around the world work from home, and the majority of them are millennials. Both their office and the rest of the house must be equipped with the newest technology. Research shows that more than 40% of all people who use smart home products are millennials.
Finally, when it comes to the location, they know what’s best for them, so, the vast majority will choose a place which is close to their job. Also, if they have a choice, they prefer buying a house in suburban communities instead of living in an overcrowded urban area.
Millennials and the Stock Market
If we consider what millennials think about investing in the stock market in comparison to real estate investing, we’ll notice that not only is the property market within their reach, but that they are turning to it completely as one of the best investment options. Why is that so? Well, the answer is actually quite simple.
They don’t trust the stock market since the majority of them grew up and entered the job market in the time of the Great Recession and witnessed the worst crash that the stock market experienced since the Great Depression. On the other hand, millennials do see an advantage in owning physical and tangible assets such as houses, so, it seems that the real estate will actually flourish more than ever thanks to this generation.
Millennials Have Alternative Ways to Invest in Real Estate
Technology is becoming more and more important each day for millennials since the Internet is basically all they need in order to be able to invest in real estate. For example, they usually choose to do that through online marketplace lending sites, such as Sharestates, which allow them to invest smaller sums of money into various real estate types. However, if they want to go for off-the-market properties, they still need to hire a great buyer’s agent in Sydney to do the heavy lifting for them, so that they can make a profit. Furthermore, this generation seems to be quite innovative when it comes to alternative ways of investing in real estate.
For example, Airbnb and rental house investing has become extremely popular lately. They can either choose to rent a partial or entire property, thus getting an income which can cover mortgage expenses or help them renovate the place. Quite practical, aren’t they? Of course, they are. It seems that other generations can learn quite a lot from millennials.
As you can see, an assumption that the property market is out of reach for the millennial generation is far from true. Not only do they know what they want, but they are innovative and able to find various ways how to achieve that. And, even though they weren’t born in the most economically stable of years, they know how to set their goals and fight for success.