Millennials Invest in Property While Remaining Renters
Many millennials are living in rental homes, but this does not necessarily mean that they are not taking part in the real estate market. In fact, recent reports have shown that many millennials are using real estate as their entry into the world of investing.
According to the vice president of RealtyTrac, investing in real estate is a great way for young people to start building equity and securing cash flow. Millennials living in unaffordable areas still can participate in the real estate market by purchasing property in more affordable locations and hiring management companies to manage the properties as rentals. Then, they can sell these properties in the future to provide a down payment on housing in more expensive areas.
David Weliver, founding editor of Money Under 30, suggests a different tactic. By purchasing multifamily dwellings, millennials can build equity and secure cash flow while living in the building and managing the property themselves. Beyond covering the mortgage, the rents from other units could generate positive cash flow.