The generation born between 1980 and 2000 is the largest generation yet and are soon to make a large impact on the economy. Known as ‘millennials’, this generation is often described as being digital natives, yet they have considerably more debt and less spending money than previous ones. However, they are best equipped to deal with rapidly changing and emerging markets. Despite this low disposable income and high debts, how can a millennial invest in the housing market?
Pay Off Debts Fast
University tuition has left students in the USA and across Europe in more debt than their older relatives. In the USA, student debt totals over $1.34 trillion. If millennials wish to get the income together to purchase their own home, then this debt needs to be paid off in full.
AAA Credit Guide (https://aaacreditguide.com/personal-loans/payoff/) suggests consolidating debts into one monthly payment. This is ideal for younger people who want to be able to easily track their debt. It may also lead to a lower overall interest rate, meaning that graduates can repay more at a time.
Find Financial Support
Investing in property is one of the best investments an entrepreneur of any age can make. Unlike other debt, a mortgage is going towards something that is gaining in value over time.
This is why a national home builder is offering $13,000 towards the student loans of their customers. Student debt can feel crippling to the younger generation, putting them off an otherwise sound investment. Initiatives such as this one swap out student debt for a mortgage, which puts graduates in a stronger position financially.
Consider Renovation Projects
Millennials live in a research driven culture with an information obsession. They will spend much longer searching for the perfect home than their parents and want a home which is perfect.
However, with limited funds left over for renovation, many millennials will only buy a home that is brand new, yet also within budget. This can be a tough ask and limit your opportunities. Consider getting in touch with a reliable handyman or learning some DIY skills. This can allow you to purchase a significantly discounted house and then sell it for a good profit.
The debt millennials are saddled with can make investment seem daunting. However, there are new opportunities available to help invest in property. Start by consolidating and paying off existing debt, then use any financial help you can find. Most millennials don’t see themselves living somewhere permanently, so finding a renovation project could be the best investment you can make this year.
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