The Millenial Generation (those aged 18-35) is currently the largest population segment in the United States, and have amassed a spending power that equates to over $200 billion. That much power has the potential to greatly affect the economy, and one of the areas they’re making the most significant impact is in the real estate market.
Real estate investing isn’t simply for the older populations, individuals who are “financially established” or retired folk. Instead, real estate investing is and should be a reality for many millennials. Not often do the words “Millenials” and “investing” go together, but in the world of real estate, they absolutely should. Whether you are on the fence about investing in real estate or haven’t even considered the possibility, investing in real estate is a great idea for Millenials to generate cash flow and create wealth.
Many millenials are turning to the real estate market for investment options to create financial stability in their lives, as opposed to conventional workforce careers. There are some significant benefits that millenials can enjoy when they own real estate, which can set them up for financial independence for the rest of their lives.
Whether you choose to rent out the property or want to fix it up and sell it, as the sole owner you will receive all of the profit. Whether you want to reinvest in additional properties to push your monthly earnings even further or save aggressively to retire early, the choice is solely yours.
There are several potential tax benefits that you can enjoy when you own real estate investment properties as an individual. One of these tax benefits is the ability to write off expenses that are associated with your rental property. You can also leverage pass-through deductions and in some cases use a 1031 Exchange coupled with a Section 121 to avoid the majority (if not all of) the real estate taxes associated with the eventual sale of buy and hold turnkey property.
Flexibility & Control
As an individual investor, you have carte blanche over your properties. You have complete control over your portfolio, so that, with the help of a trusted and reliable management firm, you can purchase properties that meet your specific needs and help you achieve your financial goals.
Why Invest? Why Now?
Millennials are starting to break the mold of generations past in terms of their financial outlook. So many members of the older generation are experiencing burnout these days, it’s almost become the norm. To stave off the burnout, using rental property investment to secure your financial independence at a young age will pay massive dividends later on in life. By securing your future with real estate investment now, you will have the opportunity to discover what it is that makes you happy. Starting your investment portfolio now gives you more life to live, and more wealth to live it with.
Where Do I Start?
Austin is a great example of a city that is currently experiencing explosive population growth, the majority being millennials. As creatives, tech investors and young business owners all flock to the capital of Texas, the rental demand is through the roof. The surge in rental demand has inevitably created a surge in the rental real estate market. Subsequently, property values have ascended, causing a rise in the price of rents. For savvy investors, Austin property management has become fertile ground for those millennials looking for a buy and hold investment opportunity. Note: Texas offers a variety of partial or total exemptions from appraised property values used to determine local property taxes, and makes an excellent place to start a real estate investment portfolio.