The millennials’ guide to real estate investing in 2022

Millennials are an investment-savvy generation. As a millennial, you realize that income from investments can help you create financial freedom and live the life of your dreams in an affordable luxury condo. As a matter of fact, a recent study showed that 74% of millennials prefer starting an investment to spending because they can grow their money over time. This is because you understand that with the right knowledge, realistic risk management, and a little inclination to work hard, it’s possible to achieve great success in both your personal and professional arenas.

Investing for millennials can begin as early as possible. This is because (1) Millennials (or Generation Y) have a better chance of achieving wealth later in life than prior generations, and (2) You earn and save money faster since you start investing at a younger age. Apart from being good or bad with money, millennials are the first digital generation who are entirely comfortable with the use of computers and the Internet, which provides you with the necessary information on investments. 

Additionally, a study found that 81% of Filipino millennials, even Gen Z’s, have started taking steps to secure their future financially because they both believe it is important to know where their money goes. And one investment option that millennials can dwell on is real estate.

Investing in real estate is a long-term strategy that can help you build wealth through appreciation or monthly income from rent payments. Either way, it's one of the best ways for young adults to build wealth, especially if you start early.

Here’s how to start real estate investment for millennials: 

1. List all your non-negotiables

While it’s important to know what you don’t want in a condo unit, it’s also imperative to know what is necessary for the property you’re buying or renting. This includes the location of the condominium; the size of the unit and the amenities that come with it; the available transportation means; the accessibility of the property to other places like schools, hospitals, stores, etc.  

Knowing what you want in your condo unit can help you avoid unnecessary stress in the future. Remember, this is a long-term investment, so it’s better to state your non-negotiables from the beginning. 

2. Use your internet resources

Most developers and brokers have taken their business to the Internet. You can browse some of the developer’s existing projects through their website. You can learn more about each project’s details and the developer’s history through its website. You can also ask around your network or search each developer’s social media platforms to get a better understanding of the projects they sell. Some even offer exclusive promos and flexible payment options for their clients. You can also check each project’s social media channels to know more about them, like Empire East Highland City. And to get a better sense of each project you’re planning to purchase, some developers provide full condo tours or snippets of virtual walkthroughs on their Youtube channel. 

Maximize your internet resources the moment you start planning on real estate investment. Despite it being a traditional form of business, real estate has come a long way to cater to digital demands for safer transactions. It’s also important to look for developers who have created digital innovations to help their existing clients, like ticketing systems, who want to file a concern about their properties. This tells a lot about the kind of developer you’re looking into and possibly forming a long-term partnership with.

3. Plan out your budget

Even if PAG-IBIG or bank funding will help you out on it, a significant amount and responsibility will still fall on you. By the time you’re planning on purchasing an affordable luxury condo, you should clearly state the amount you’re willing to shell out every month, including the additional condo expenses. Don’t forget to consider the reservation fee and downpayment, too! 

One way to estimate how much you can spend for your home is by the rule of thumb of getting 30% up to 40% of your monthly salary. Make sure it’s enough for this kind of long-term investment. 

With credit card debt, declining wages, and the highest cost of living in decades, it’s hard to imagine how millennials can afford a home. But it’s possible to own real estate even on a millennial budget. With the right budget and spending habits, you can do it.

4. Network with professionals who can help you along the way

Work with someone with extensive industry knowledge, including developers, projects, resales, etc. Do not hesitate to ask questions and lay out your concerns. Tell them what you are looking for so that they can help you find a specific property. You can also ask some questions about the property, which the website failed to answer.

Whether that’s a broker or a real estate agent from a developer, always remember that these people are in your best interests and are merely helping you out on your investment. You can read here why consulting with a real estate agent is the best decision you can make.

Millennials are not exactly known for their savvy business decisions or their real estate investments. But what if it’s time to change that? If you’re a millennial and you have some money to invest, there might be no better place to put that money than into real estate. Investing in real estate as a millennial is not just profitable; it's also one of the best decisions you can make as a young adult. Not only will it set you up for financial freedom later on in life, but there are also several benefits that come with being a young real estate investor.