Despite the coronavirus pandemic, recession and social upheaval, pockets of the US housing market are heating up – particularly the suburbs and rural rentals. And millennials aren’t shy from taking advantage of it!
According to a Real Estate Investing Report by Harris Interactive, 55 per cent of Millennials said they were interested in real estate investing. And with more money in the bank (1 in 6 Millennials have savings exceeding $100k, according to a Bank of America Survey), this generation is leading the housing market charge through long-distance real estate investing.
Case in point: “75% of Roofstock users are first-time real estate investors, and more than half are under 35,” says Gary Beasley, CEO and co-founder of Roofstock – an online rental property marketplace.
Long-Distance Real Estate Investing
In 2007, around two-thirds of investors were primarily focused on the stock market. That number has fallen to 50%, with many Millennials choosing to invest in real estate instead, as per RealWealth. A few reasons attributing to the trend are the volatility of the stock market, booming real estate in the US and millennials chasing the tangible experience of owning a home.
Though another major factor that led to this push is the growing number of US millennials aspiring for early retirement and considering real estate investing as a potential source of passive income.
Real estate has evolved to be a multi-faceted investment vehicle for growing wealth. Investors no longer need to buy a home for the purpose of living in it or retirement. In fact, millennial investors are doing quite the contrary. By investing in single-family rentals they are using their investment as a cash-flow generator to amass wealth – and eventually, reach the “retirement at 40” goal.
Buying Out of State
Heavy down payment and expensive properties within your hometown are the major bottlenecks for real estate investors. But companies like Roofstock are clearing the way and making the process of investing in real estate as convenient as buying a pair of Nikes online.
Roofstock is an online platform that allows investors to buy and sell single-family rental properties remotely – without ever having to physically visit the property.
The way Roofstock works is pretty straightforward. There are hundreds of affordable turnkey properties listed on their online rental marketplace for investors to choose from, some for as low as $38,000, earning $725 per month in rent.
With listings in 70 US markets including Atlanta, Memphis, Indianapolis, Jacksonville and the greater Chicago area, the company gives you the chance to invest in out-of-state, and ergo, affordable rental properties.
What makes Roofstock stand out in the overly-crowdfunded real estate market is the fact that it’s centred around the consumer experience. Whether you are a buyer or a seller, it equips you with features including neighbourhood ratings, property inspection reports, floor plans and much more, to help you make a smart financial decision.
Additionally, it connects you with vetted property managers in case you don’t want to take on the hassles that come with property management like rent collection, emergency repairs etc.
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