There is a lot for younger generations to get discouraged about when it comes to real estate. Ever-rising housing prices across the country, paired with low supply and fierce bidding wars, are squashing the dreams of home ownership for many Millennials. Gen Zers, meanwhile, may never even have thought of the possibility based on the market as it stands now.
How does one stay optimistic amid a market that seems set on keeping out hopeful younger generations from achieving the dream of property ownership? Here’s some real estate tips for 20-year-olds as they look ahead.
Gen Z Real Estate Advice
There is a tried and true – and somewhat irksome – piece of advice for investing: the best time to invest was yesterday. That is especially true right now. Housing prices have more than doubled since 2016 in big cities like Toronto and Montreal. The average home price across Canada in December 2016 was just over $470,000; last December it exceeded $713,000.
If you had the means and foresight to buy a home in the spring of 2020, that investment has likely already paid off on paper with the industry booming as a result of many people reassessing their housing needs. In the last year alone, the average housing price across Canada rose by 17%.
However, with so much to learn about the real estate market, some of which can only be gleaned through years of experience, it’s important to start conservatively and seek out advice. addy offers crowdfunding investments for as little as $1. With no associated fees, every dollar of your investment goes into a property, and the only liability is that investment. You don’t have to manage a property or monitor the ups and downs of a market, you just have to wait. #GetRichSlow
Create a plan
Any wise investment requires a plan, but the ability to start so early in said plan allows for realistic short and long term goals as well as plenty of flexibility. Think about what you want to have accomplished in one, two, five, 10, 20 and 25 years. As you look farther ahead, though, know that the pathways may change drastically. It’s important to have specific goals, but your plan should also include benchmarks where adjustments may need to be made along the way.
Short-term goals can be as simple as having a set amount of money investing with perhaps a long -term goal of owning certain types of properties in certain places. Maybe you want real estate investment to be the focus of your professional life, or perhaps you want lengthy, lucrative investments to fund other interests and adventures. Consider all the possibles and set forth on your journey.
Knowledge will help open up the gateways to success. Maintain a curiosity about the world around you and regularly stay up to date on news, trends and current events. Don’t just focus on real estate either, because real estate investment doesn’t exist in a vacuum. Read up on technology, local politics, pop culture and social media so that you can be an active, thoughtful participant in society.
It’s important to keep in mind too that some of what is important and useful right now won’t be relevant in 10 years time, so harness knowledge now but don’t let it trap you in the past. For example, real estate crowdfunding has opened up new opportunities in recent years that didn’t exist a decade ago.
Anticipate desirable locations
Sage real estate investment involves finding value ahead of time and anticipating trends in the market. It’s not just cities or towns that may be booming in years to come. There is even value in popular places if you look at the right neighborhood or even the right intersection. You can find a house on a less desirable street today that will be the next popular destination in years to come.
The increase in remote work opportunities means that value isn’t just in big city centres anymore. It’s also useful to stay up to date on what is happening on a municipal level in any given city or town. Often revitalization projects are in the works, with developments envisioned in five or ten years time that can offer significant value if you invest at the right time and are willing to wait. A recent addy found itself on the edge of an intensive city-run project to rejuvenate the Tiffany Barton Lands in Hamilton that looks promising.
Live your life
It’s important to use this time of your life to take advantage of the opportunities and freedoms before you and not get caught up so much in preparing for the future that you’re not enjoying the present. Creating a system to earn passive income so that money you have does some work for you while you are living for yourself. What’s more, exploring the world around you means learning about the culture and design of other cities and towns that may help form the foundation of your beliefs in years to come.
Invest with addy
For young adults and adults young at heart, addy offers simple and accessible means to invest in real estate. addy is not interested in your financial history or real estate background, but instead believes in real estate for everyone, offering investments for as little as $1. For those who are looking at building up some passive income and embrace the dream of property ownership, crowdfunding real estate may be right for you.