The word “millennial” no longer serves as a byword for teenagers. However, it still describes a generation with financial practices that are distinct from the generations who came before.
The stock market一once the bastion of value一has increasingly fallen by the wayside with today’s upcoming investors. It’s real estate, says Andrew Shader, that now holds more value for first-time investors than either stocks or gold.
Real Estate vs. Gold vs. Stocks: What’s the Comparison?
The cost of gold and stocks has long dictated the general value of the industry. For today’s investors, however, both gold and stocks alike represent something intangible. While savvy investors can play the stock market to secure a more substantial income, the results of those investments often take time and losses to come about.
Real estate, comparatively, offers investors tangible rewards for their efforts. The ability to directly interact with an investment raises its value, at least to the millennial investor. Considering the uncertainty that rose with the 2020 pandemic, too, the value of not only owning real estate but having a place to call one’s own has become increasingly important to the American population.
How Secure Is Real Estate Investment
Seller’s markets often seem untenable in the world of real estate. Prices fluctuate in favor of the buyer at some point, making the property that a person invested in less valuable.
However, experts like Morgan Stanley have made the booming real estate industry an increasingly important investing field. In their Thoughts on the Market podcast, Morgan Stanley identified the real estate market as built on a foundation of supply and demand. There will always be a demand for housing. Ergo, the housing market, despite its fluctuations, is likely to help the market appreciate for decades to come.
Can Americans Today Afford Property Investments?
Beyond security, there’s the question of whether or not today’s investors can afford to purchase real estate. Even on a residential level, prices now rest in a seller’s favor. Despite the 2020 pandemic, this appreciation reflects inflation that’s been growing for the past two decades.
For interested investors, then, the substantial investment of real estate is becoming less and less attainable. Of course, it is not impossible, but debt-riddled millennials may have to turn to private lenders or interest-forward mortgages to make their dreams of owning property come true.
Taking on Today’s Real Estate Market
The stock market has not lost its value. Millennial investors are more cautious than their predecessors, but that does not mean they aren’t considering which stocks may serve them best. Meanwhile, however, the prospect of investing in a tangible representation of the future (i.e., real estate) makes homeownership an investment to consider with enthusiasm.
About Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.
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