For real estate investors, tracking the trends of millennial buyers is more important than ever. As the millennial population enters the established worker years of their lives -- most are approaching their 30s at this point! -- they will collectively look away from rentals and seek to put their now-established career earnings towards something more permanent. Here are three of the most important points to keep in mind when investing in properties to sell to the coming wave of millennials looking to own property for the first time:
Millennials prefer homes near their jobs.
Challenging commutes are regarded even more dimly by millennials than previous generations. A good way to apply this to real estate investment is to focus on properties in developing job markets. In northern California, the tech business is rapidly expanding to areas beyond the confines of San Francisco and the usual suspects of suburban Silicon Valley enclaves. Identify markets that startups are increasingly interested in, or established tech firms are expanding satellite offices to, and get involved with those markets before prices rise as the waves of new tech workers arrive.
Affordability is key.
The current generation of young Californians is well aware of the challenges inherent to buying homes in California, and even the most affluent will have a great deal of apprehension towards the process. A great way to mitigate this is to work with realtors who make sure your buyers are aware of any first-time buyer assistance programs, benefits, and more that might be available. This doesn't impact your end result and helps young first time buyers make the leap. Investing in cities that add additional first-time buyer incentives on top of the existing state programs is a solid move.
Fully-inspected, safe homes are a must.
With housing prices much higher on average in California compared to many states, millennials buying for the first time tend to inform themselves in great detail before taking the leap. Paying for private inspections is more common, given the stakes. Ensuring your real estate investments are prepared for this is paramount, and it will also eliminate the risk of any externalities caused by property issues you may not have known about otherwise. With so many millennials coming off long-term renting situations, they will be especially attuned to any potential issues with the first home they look into owning.
For more tips on investing in properties to sell to young Californians, contact us at Trust Deed Capital today!