City vs Suburbs—millennials are turning the tables. Instead of investing in less expensive homes in the suburbs, they’re doing just the opposite. Urban living is more attractive to this generation and even those with modest incomes are finding creative ways to move to the city. Their solution: fixer-uppers.
This is good news for real estate investors, who buy properties to flip quickly. They will do well to explore a market overflowing with millennial homebuyers. Whether investors buy low, make a few improvements and sell for a little profit, or sell contracts before the sale is complete, millennials are waiting in line to gobble them up.
It seems these often handy and tech-savvy young homebuyers, who’ve been touted for their needs for immediate gratification, are willing to wait when it comes to having their dream home. They scale down their expectations by purchasing older homes and homes in disrepair. Homes requiring a little TLC are more available and affordable than newly built or remodeled homes.
Urban living is more attractive to this generation and even those with modest incomes are finding creative ways to move to the city. Their solution: fixer-uppers.
Homebuyers both young and old can save tens of thousands of dollars on fixer-uppers. Even those who can’t do the work themselves hire contractors to refurbish, repair and bring homes up to code. It also makes sense because investing in a renovated home can result in a larger long-term return on investment.
Millennials aren’t investing in real estate as quickly as in previous generations. Some factors that impede millennials when investing in real estate aren’t fully in their control, such as lower salaries that lead to inadequate down payments or lack of opportunity to secure loans.
Is there anything that can be done to create a shift? Yes. There are ways around these potential roadblocks. One of them is education. Learning how to make money with real estate investments—even after purchasing the home they live in—can mean the difference between barely making it financially and saving for a nice retirement.