Ashok Mohanani, Chairman Ekta World & Vice President (Guest Article)
Real estate is seen as the most appreciated asset by far.Owing a home is a right path that many of us dream for. The prices are usually on an ascend, thereby giving you an appreciation on your home and rather than having a minimum 10% escalation YOY on rental property. These factors are based on a fixed-rate mortgage. Millennials have their own yardstick for making investments and are always looking out for tech-based solutions that will help them to maximize their hard-earned income with minimal risks. Especially with a fixed-rate mortgage, you know exactly what your payments will be over the lifespan of your loan. And by knowing your fixed EMI, makes it easier to budget, plan, and invest for the future.
Buying a home provides one, the most important aspect of life- security at multiple levels. That’s probably the reason why it’s counted as a basic need in one’s lives.
Over any other asset class, youth above the age group of 25 are valuing real estate, as against stocks, due to the durable scepticism from the stock market crash, which contributed to the 2008 recession. During this time, it was difficult for many college students and graduates to find jobs. Financial repression also affected many families, leaving behind a bad thought of the stock market.Purchasing home means to provide some level of financial and emotional security to millennials and their families.
Today’s millennial believes in securing their future and plan for post-retirement life. Half of the country’s population is under the age of 25; no other country has more young people. But today’s 53 million young employees face challenges when it comes to saving and investing for their retirement. Real estate is amongst the most viable propositions available. As the old adage goes “don’t wait to buy real estate, Buy real estate and wait” it will be rewarding. Millennial workforces understand the prominence of safeguarding their long-term financial well-being. As this investment will yield significant benefits to them. Because of the power of compound interest, it is important to start saving at an early stage of life as this gives benefit for the long term.
Today’s youth’s inclination is towards doing the research online. But they finalise on a purchase only after various consultation and visiting the site physically, post complete due diligence. To familiarize real estate marketing for the new digital era, brands need to maintain an active presence on a social media platform. Since today’s Y’ generation is tech savvy, a realtor also needs to fine-tune their search engine marketing methods. This is crucial for brands to appear on the first page of search results.
Millennial’, is also gradually favouring small investments in the commercial real estate for supplementing their current incomes. This also has the suppleness to purchase and sell as per their requirement. This further creates another avenue of capital in case of an urgency or financial crisis.
Owning a home is a symbol of financial and emotional security for most millennials. The young generation has also swiftly realised that an owned asset sets them free from being dependent on landlords for housing requirements. Investing in real estate also helps them save on amounts spent on rents which in turn can be used to pay as EMIs on an owned home.
Many millennials are planning to park their money by investing in a home. Developers understand this need of their TG and customise home offerings as per need and cash in on these demographics’ need to make sound and favourable investments with them.
(The views expressed by the author is his own)