Why Millennials Should Buy Real Estate in 2016

Now is the time of goals, resolutions, and planning. We have just entered into a new year. The past is the past and the future awaits. For the next 365 days, there is nothing but opportunity ahead of you. I’ve spoken to many millennials in the past few weeks and most of them have a goal of investing in real estate this year. This is great for many reasons. I want to give you 4 reasons why millennials, or anyone really, should invest in real estate in 2016.

1. 2015 Was a Record Year — I’m sure by now, if you’ve been following real estate, you have heard about many booming markets across the country. Texas being one of them, home values have really sourced and are on the uprise even further. With that being said, it’s best to get in while you still can. Many people saw how 2015 was a record year for real estate. We had very low interest rates, an influx of buyers that we haven’t seen since the recession, and lenders offering more programs and incentives to those wanting to purchase a home thus making things easier. In North Texas, we have seen increases in value as much as 12%, and even higher in some areas. With 2015 being such a great year, investors are really looking forward to 2016.
2. Long Term Financial Growth — As Millennials , we are in the generation in which we can make strong financial decisions at this moment that can greatly increase our chances for financial stability at retirement. Something that produces long term increase is the best way to do this. Owning a home is a practical step in the process. Real estate has been historically proven to grow over time. Make sure you select a home in the right area with a good supply vs. demand ratio. Imagine purchasing a $150,000 home in an area where homeowners are seeing about a 10% increase year over year. After the first year, you have netted about $15,000 already in the event you wanted to sell.
3. It Proves Your Financial Know How — Investing in a home improves your financial know how in life. Investments teach you many lessons. Whether you invest in stocks, bonds, businesses, or real estate. You will learn valuable lessons along the way. The fact that you were able to save for a down payment by-itself shows financial discipline. When you purchase a home, you purchase what you can afford. You took a hard look at your finances and purchased something that works for you life. The decisions you make when it comes to your home will all be in an effort to protect your investment. When you look back 20 or even 10 years, you will see the fruits of your labor.
4. You Should Own Instead Of Rent — I know I have preached this over and over again but it’s true. You will get none of these benefits that you have read so far by renting. Whoever you are renting the apartment, home, or condo from, will receive them. I encourage you to read my article, If You’re Renting You’re Paying a Mortgage. One common misconception with millennials that I have heard is that most think owning a home means moving to the suburbs or into something they don’t want. I can almost guarantee you, wherever your apartment is, there is something very similar and very close that you can purchase. Owning gives you the opportunity to build equity in something. As values rise year over year, rents rise as well. As a renter, you will pay for the rise, as a home owner, the rise in value pays you.

We are on the rise. In your job you typically go into work to make money. Protect your money with a solid investment. You make many investments everytime whether it be 401k, stock options, social security, and whatever else. It’s time for you to make an investment in 2016 that you can see and feel everyday and know it’s really yours.

Cheers to you — Chastin J. Miles