What’s the best way to invest money? According to a survey from Bankrate, 31% replied real estate. Surprisingly, this is more true among millennials. They say real estate is one of the best long-term investment options, even better than stock.
Wondering why millennials investing in real estate think this way? That’s what I plan to discuss today. As a bonus, I have also highlighted some of the best real estate options for young adults.
But let’s begin with identifying who millennials are.
Millennials are broadly categorized as people born between the 1980s and 1990s. So that makes them in their late 20s and early 40s today. Simply put, millennials are young adults ready to face the world and its challenges.
But millennials are an interesting group of people. They have witnessed the growth of the digital era. Everything is slowly transitioning online, from education to banking to business. This enables them to tackle problems with technical finesse. More importantly, they are more fiscally conscientious than other generations.
The 2007-08 global recession and COVID, followed by the worldwide economic crisis have taught millennials how to become financially savvy. They can manage their personal finances with foresight and are more willing to explore new money-making avenues.
So while we see millennials actively participating in non-conventional business models, such as social media influencing and freelancing, we also see a lot of them taking the traditional route – investing in real estate.
Let’s take a closer look at what’s driving millennials to turn to real estate.
Pakistan’s notorious inflation rate is pushing prices sky-high. Unfortunately, it’s also reducing the value of the money sitting in the bank.
An easy way to preserve the value of their hard-earned money, young adults are purchasing properties as a hedge against inflation. What’s more, it’s a tangible asset that is a safer investment option than stocks or foreign currencies.
In continuation with the above point, investing in real estate during inflation has another benefit. As the prices of commodities escalate, so too will the value of the property. And this is more so for properties in areas that are more developed or high in demand.
And when it does come time to sell, the investment is sure to be sold for more than its purchasing price. That means buying and selling property is a great way to earn extra cash.
Owning another property means you can rent it out and receive some more money at the end of each month. What’s more, it presents investors with an opportunity to accumulate more wealth over time and possibly re-invest in property.
Considering the financial profile of millennials as investors, two key factors play a major role in their decisions. Real estate properties should be:
Both factors make the property affordable enough to fit into the budget and make investing worthwhile.
Let’s take a look at some types of real estate properties that are attractive to millennials.
Millennials can either book a flat purely for investment purposes or secure a future home for their family. And considering how the price of real estate is increasing, it’s best to invest now rather than later.
Apartments are usually the first investment options for millennials since they are often the most affordable. But since many residential complexes are now equipped with state-of-the-art amenities, young adults are more keen on buying them. Living independently in apartments is something they can foresee in the future.
Nowadays, many millennials don’t have a huge amount of spare cash lying around, especially with the current rate of inflation. So they are more likely to search for projects with a feasible downpayment.
At the moment, many such projects are being developed around the metropolis. And as Karachi continues to expand its boundaries, it’s only a matter of time before the prices of these flats will increase. Some budget-friendly residential investment options include:
All these are attractive options for those looking for an apartment in the heart of the city.
Townhouses are second on the list of investment options, especially for many just starting their careers. So Chapal Uptown, a spectacular housing project in Scheme 45, is worth considering.
Millennials prefer the low-cost, minimalistic style that these homes have to offer. They provide the privacy of a home even though they are smaller than an average house. What’s more, since townhouses consist of two to three independent units stacked together, it creates an atmosphere of community living. This provides the independence young adults crave yet offers the presence of a few neighbors close by.
These characteristics make townhouses the ideal housing option for small families with low to medium incomes. But for those who aren’t quite ready to live here, this type of residential property rents out at a good price.
Last but not least, millennials are interested in investing in economical commercial properties, such as kiosks and small shops in Chapal Navinta Mall. Not only are they a great place to start your own business, but it’s a promising rental property that can provide a second source of income.
If you’re a young adult thinking about investing in real estate, now’s the time to buy a property. It’s a great way to secure your earnings and allow the value of your savings to grow. However, the key to success lies in partnering with the right property developers.
We at Chapal Builders can help take your investment to the next level. With over 50 years of experience in the industry, we focus on developing properties in areas with the most ROI.
More importantly, millennials investing in real estate – we are on your side. We have a list of properties available at easy installments. Contact one of our sales representatives to find an investment option that fits your budget.
Secure your future today.