The real estate market saw a massive boom in 2015 with millennial investors and renters. We saw a lot of millennial investing in turnkey real estate because it helped them to create passive income without getting their hands dirty.
Investing in bonds, stocks and metals have always sounded much easier but the returns on investment isn’t that great. With real estate, they can have something tangible and with the help of property management companies, they don’t have to bear the workload of a landlord too.
Another interesting aspect of millennial investors was that they weren’t very keen to invest in their own state/city; especially if the markets were too expensive. According to Daren Blomquist, vice president of RealtyTrac, “For some young adults, investing in single-family rentals could be a really good strategy, especially if they’re living in an unaffordable market. By purchasing a home in a less expensive market, they could start building equity, and perhaps get some cash flow.”
All of this also allows millennial investors to decide where they want to settle eventually. Many millennial are buying properties in different cities. It allows them to understand the market and they get monthly profits which they invest in other properties.
With time, a lot of young people become a full time real estate investor because they have been able to generate positive cash flow for them. I had a similar kind of story where I accidently ended up buying my first investment property at the age of 21 and since then, there’s no looking back.
Recently, RealtyTrac has conducted a study to find out the most and least affordable rental markets for millennial in 2016. Fulton County, Georgia, Durham County, North Carolina, Harris County, Texas and Cook County, Illinois are amongst the most affordable rental markets in the US. These are the counties where you can easily find an investment property within your range and if you are willing to rent a property, you can do that too easily. You can check the detailed stats below:
The counties that are least affordable for millennial are Kings County, New York, Virginia Beach City, Virginia, Seattle, Washington and others (please check the detailed stats below).
If you are a newbie investor, it’s difficult for you to find an investment property in these areas. Cities like Seattle are a hub for many Silicon Valley companies and a lot of millennial are working there. That’s why; the rents are sky-rocketing.
Many millennial staying in cities like Seattle or New York are more inclined towards investing in Chicago or Austin where housing affordability is much higher. According to the research, it looks like that 2016 would also be a good year for millennial to invest in real estate because of the stability and profitable returns.
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