There are several reasons why investing in real estate can be an appealing option to younger Californians. Millennials may find it particularly appealing because of the potential for higher returns as long as they are comfortable with taking some risks.
Many millennials are nervous about investing in the stock market because of its volatility. Real estate may be a good alternative investment because it tends to stay stable in the face of share price collapses. Real estate investments may also be more lucrative than simply leaving money in savings accounts. Investing in real estate does not always mean that a person will need to have substantial cash reserves. People can participate in crowd-funded investments and get started for around $100. They may also get mortgages to purchase investment properties, and some of these loans require very little down.
Another good reason to consider investing in real estate is doing so can immediately increase the buyer’s monthly income. If people purchase a home and then rents it out, they may receive the monthly rent in addition to the income from their day jobs.
Like other investments, it’s important for people to do research before purchasing a property. Real estate investments do carry some risks, and research can help people to avoid some of them. Many of them are legal in nature, and that is why having an experienced real estate attorney review the proposed investment in advance can be advisable. For example, an attorney could spot a potential title dispute that could prove to be both costly and a barrier to moving forward.