Avocado toast and expensive designer coffees aside, are millennials truly poor at growing their monies? Perhaps not.
24% of millennials already own more than 1 property
Recent research studio showed that millennials aged between 21 and 36 were the quickest to save for housing deposits. While many may dismiss them for their carefree ways, they may be more financially savvy than most would think.
Out of 1,000 individuals surveyed, only 54% of homeowners were millennials. Yet from this pool, 24% of the millennials were already owners of more than 1 residential property. In contrary, only 17% and 19% 0f the baby boomers aged between 54 and 72 and Generation X-ers aged between 37 and 53 respectively own more than 1 piece of residential real estate.
Perhaps it is the trend of the 21st century or something they learned from their peers, but most of the younger generation are keenly aware of what their second property can do for them – namely investment. Their future-proofing game is strong as most of them realise the value in real estate, especially in cities like Singapore.
Flexibility and focus are millennials’ strong suits
Some may put it to their relative lack of other commitments such as taking care of the elderly or extended family members, but millennials do have a knack for seeking out the best mortgage deals.
By being flexible enough to re-finance and sniff out the most competitive mortgage rates, they are able to put what they have saved into investing in the additional real estate.
On the average, they take 5 years to save for their housing deposit, which is 1 year less than the baby boomers and 2 years sooner than the Gen X-ers. And perhaps herein is the essence of this new generation – focus in saving, savviness in investing in the right future-proof asset and flexibility in switching whenever required.