Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

Turns out millennials aren’t the tenant generation after all. According to Mynd’s 2022 Consumer Insights Report, there are segments of millennials and Gen Z buyers who are pursuing homeownership as a way to build wealth, but not exactly the way previous generations did. may not. This study explains how they hit the market.

 “. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

Some young buyers buy homes for rent rather than buying a home and moving in themselves. This tactic may have gained popularity, at least in part, due to affordability issues posed by today’s higher mortgage rates. I am referring to what you are considering. it says:

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Buying a Home To Use as a Rental

This strategy allows buyers to continue living where they are now, whether it’s the hustle and bustle of an urban apartment or the neighborhoods they know and love they couldn’t afford to buy. But rather than give up on the idea of ​​owning a home, buy one in a cheaper area with the intention of renting.

In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it. Their goal is to generate passive income and diversify their assets. It works like this:
In addition to rental income, the equity they have built up in their homes can also help grow their net worth over time.

Bottom Line
If you’re considering buying a home as an investment strategy to build your wealth, connect and explore options and nearby neighborhoods that may have a home that fits your ideas.

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