Real Estate Investing Could Be Your Key to Financial Freedom
Plenty of us have heard (and/or been) a jaded millennial talking about how they will never be able to own a home—but that's hardly the case any longer. In fact, a 2021 report by the National Association of Realtors studying generational real estate trends found that millennials (both young and old) are currently the largest group of home buyers at 37 percent. And while a 2020 survey by Apartment List found 18 percent of millennials do not expect to own a home, half of the millennials in the U.S. are also looking to invest in real estate instead of the stock market, according to a 2017 report by Harris Interactive. Gen Z is also looking to get in on the action, with 83 percent of Gen Zers looking to buy a home in the next five years, according to a survey conducted by real estate research blog PropertyShark in 2018.
So why all the interest in real estate? Monick Halm, founder of Real Estate Investor Goddesses, a program dedicated to educating women on real estate investing, says it is the key to true financial stability. "I think of financial stability like a table. And income is the legs of the table. Most people are taught to have a table with one leg, and that's your job," says Halm. "True financial stability is when you have multiple legs on your table. Real estate is one of the best ways to give you that because you're getting these passive income streams that are not connected to your time."
Low interest rates as well as the financial setbacks people have faced this past year have actually increased opportunities in real estate. "I think that all of this stress on all of the people who have lost jobs and aren't able to pay their mortgages that's actually going to provide a lot of opportunity to get properties at a severe discount...help people get out of situations that they're in and get in at a good time," says Halm. Here are ways to set yourself up for success in real estate investing to create financial stability and freedom.