An Investment Guide For Millennials in The Real Estate
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The term “Millennials” refers to the generation of people born between the early 1980s and the early 2000s. They have grown up witnessing the advanced technological era and have been exposed to the technologies, in terms of communication, entertainment, shopping, and education. They are more sociable in nature. The millennials have a different perception of the homeownership as compared to the previous generation. They are very much open to new ideas of ownership versus renting which has made a major impact in the Indian real estate industry in the last few years. By the year 2020, India is likely to be the youngest nation in the world, with an average age of 28 years. It will make India as one of the economically formidable nations in the world. However, the millennials have been brought up in the modern era with adequate knowledge but, they still have a long way to go to understand how to invest in the real estate industry and be profitable. Here are the guidelines.
Choose Home as an Investment
It is advisable to buy apartments in emerging locations which will have long term appreciation. The urban areas are more and more populated and the people are moving to suburban areas where builders are offering affordable homes with greater infrastructure and facilities. The land value of such housing project grows relatively faster than its city counterparts. Moreover, the government also started advocating such projects by minimizing the guidelines in comparisons to urban guidelines and then creating lots of connectivity for an easy commute.
The IT companies are occupying to the suburban areas due to congestion in the city which will create higher demands in our urban projects and the rentals also will go higher. It would be a smart move to invest in such projects for a better return in the future.
Choose Compact Homes
If anyone likes to stay closer to work or job hopper, then consider investing in compact homes which currently come at affordable pricing. The home basically comes with modern amenities and people can experience comfortable living. The compact homes have different sizes such as 2 &2.5 BHK and the dimensions start with 800 sqft. The compact homes come with an additional proposition that is a lesser investment compared to other luxury homes and lesser EMI as well. It allows you to explore other avenues of investments. The government also brought few schemes in order to promote affordable homes through PMAY, CLSS which makes the millennials invest without any qualms. Such homes also have a huge demand in the home rental market.
Invest in Interiors
After buying a home, the interiors play a significant role to get a better rental return and it becomes easy to convince the tenants as well. The home and the location may be good enough but if the interior is not appealing to the tenant, they will absolutely give a second thought to choose your home. Therefore, you have to give equal importance to the interior as well.
Adapt to the Changing Trends of Co-Living
One of the fastest growing trends in the real estate trend is co-living. The millennials should consider these trends as well while you’re investing in the real estate sector. Generally, 2 BHK can accommodate 3 or 4 working professionals which will give a better rental return for your investments.
Invest in Commercial and Real Estate Funds
The commercial space has been gaining momentum for the last few years after the emergence of start-ups and grade A commercial offices and co-working spaces are on demand. Bangalore has higher demand and the vacancy is less than 5per cent, Pune and Chennai have up to 10per cent. The industry is expected to grow in the 2019 fiscal year. The millennials can confidently invest in such properties.