A Great Way for Millennials to Plan Their Real Estate Investments in 2020

India is all set to become the youngest country in the world. More than 64 % of the population will be in the age group of 20-35. The millennial generation, or the generation Y, is a tech-savvy generation that relies heavily on online platforms to stay updated on latest trends and keep themselves informed on whatever sparks their curiosity.

Being from a well-informed and well-educated generation, millennial investors are bound to conduct in-depth research and study every information material they can get their hands on, before even considering an investment. Especially when it comes to investing in real estate, millennials are often baffled by the number of options and variety of categories available for investment. It often takes up too much of their time just to even get a clear perspective on what is ideal for them and what is not. Getting a grasp on the ideal investment options can be very tricky in the real estate landscape as it is one of the most dynamic investment avenues available, with each sub-sector offering its own pros and cons that are fundamentally different from the other. 

Creating an investment strategy;

That being said, millennials need a simplified strategy for their real estate investments.  As most millennials are first time investors in today’s date, having a simplified strategy would work best as one can use it any given point of time. An ideal strategy would be one that clearly identifies your investment potential, income goals and finds you the most hassle-free investment options.

This is how millennials can strategize their real estate investments;

1. Become financially aware:

This is the most rudimentary step that is often overlooked by many people. Before you consider an investment, you need to be sure that your financial health is good enough for you to step into the investment game. To know this, you need to evaluate 3 simple things;

1. Your earning plan:  A real estate investment is going to attract some hefty EMI’s for longer periods, unlike the EMI’s on your electronic gadgets. Make sure that you intend to stay employed for a long time or at least have some plan for monthly earnings in the long run.

2. Savings: Most real estate investments demand a down payment… at least the good ones. Make sure you have enough savings to dedicate a large chunk of it to your down payments. This way, you don’t have strap in your emergency cash.

3. Credit Score:  The most important part of becoming financially aware is checking your credit score. All money lenders rely on your credit score before sanctioning your home loans, to deem you worthy of it. Keep a close watch on your scores as there can be critical discrepancies in credit reports and scores (mostly caused by credit bureaus), which can lead to a rejection of home loans. 

This step will put your planning into gear and get you thinking about all the numbers you need to think of. Once you are settled on a budget, it’s time to start thinking on how exactly you want to go about spending your money. 

2. Identifying the type of property:

There are 2 main categories of investments which are very straightforward; 

1. Residential: 

2. Commercial:

Over the last few years, the huge influx of entrepreneurial ventures and young populace in cities and metros have caused the diversification of both residential and commercial real estate investment opportunities. 

For those interested in a typical apartment or commercial workspace investment, they can still go for those and reap the benefits of monthly rent. It’s not at all a bad option. But the new opportunities that have come up are really interesting, and these are certainly the ones millennials should be going for;

1. Co-working spaces: The typical young business people and entrepreneurs are not a big fan of having their own dedicated working space. Instead, they prefer to share commercial space with other companies. This has proved to be quite cost-effective for companies and real-estate owners, which has given rise to a multi-million-dollar industry known today as co-working space. Co-working spaces offer great ROIs as they are shared by more than one tenant.

2. Student housing: Student housing is a type of property dedicated for students, given to them on rental basis. These properties serve as fool-proof investment avenues, as student housing demand in cities and metros is on a constant rise.

3. Mall and entertainment complexes: Every city in India today is trying its best to fulfill the ever-evolving demands for full-fledged shopping malls and leisure complexes.  These are the kind of commercial complexes that are going to thrive in the coming years as they easily facilitate all the top demands of today’s youth such as eateries, nightclubs, cinemas and shopping outlets. These complexes seem to be ever in demand and are great ROI’s, as they attract hefty rentals from shop owners. 

4. Retail spaces:  Retail space is another great option for commercial investment where you lease the commercial/shop space purchased [in a residential or a fully commercial building] to business owners. Shop spaces are quite attractive small-scale business owners, like Kirana stores owners or laundry business owners. 

The above guidelines shall give you a solid perspective on how to go about creating a strategy for your real estate investments. The year 2020 is bound to bring some exciting opportunities in real estate and millennial investors are surely in for some great treats.

For those looking for exciting investment opportunities in Pune, you can check out BramhaCorp properties as they are one of the leading real estate builders in Pune. BramhaCorp offers a variety of high-value investment options for commercial spaces as well as residential properties, in some of the most iconic areas of Pune like Camp, Baner and New Kalyani Nagar. These properties are developed for a truly modern and premium lifestyle, and offer a great resale value to buyers. To learn more about BramhaCorp properties, you can visit their website www.bramhacorp.in and find more information about each of their upcoming and existing properties.