@ Benjamin Riehle:
We just rebounded from the Economic Abyss in 2008. The economy is still not firing on all cylinders. Growth is anemic. Everyone knows that.
However, rather than crying "Wolf" and painting a gloomy picture. As RE entrepreneur we ought to make a concerted effort to educate our targeted demographic one at a time on How? to own their first home or rent to them. There is always an opportunity for people who solve the problem at hand. Doubters will always find ways to not invest and stay on the sidelines.
Millennials are different demographic love them or hate them. We can't approach this Demographic with a cookie cutter Real Estate solution but rather customize a solution for first time home buyers with lease option, house hacking, and building micro/tiny homes etc.. Sharing economy is new to all of us Investors we have to adapt to the new ground reality.
Here are a few reasons why I feel genearally bullish about Real Estate and Millenials in general at least mid term 3-5 years:
1. There is so much uncertainty in other markets outside of US of A which means Big Nation Banks monies will continue the inflow because of better returns on their monies thus keeping the cost of borrowing relatively competitive.
2. Interest Rate are still historically low, there is room for growth for at least until the next election cycle.
3. Big Banks are actively pursuing Block Chain, Smart Contract Technology and other advances in FINTECH that will reign in lending Costs and mortgages will be processed sooner but smarter.
4. Real Estate Home Values are still below the highs before the 2008 correction
5. Recent Govt published Economic Report reported an uptick in New Home Construction which means existing inventories will also benefit with increasing home values. Thus buoying the overall Construction activity.
6. Market Demand and Supplies are great equalizers when demand outpaces supplies then rental rates correct
7. Last but not least the incoming administration and the Real Estate Lobby will use their power to force the Congress to pass meaningful legislation to tame the "Student Loan" 800 lb gorilla.
I'm very excited about the opportunity the market has to offer and I'm working on Realtor License for State of Michigan.
Incidentally, I'm in a midst of coaching/helping/assisting my first millennial client in buying his First Investment Property. This client; who is a college grad with an Accounting Degree with little or no debt, no credit history, annual salary under $ 23,000.00 per year, living with his parents and but saving a whole lot.
Real Estate has less risk than compared to any investments. The Mortgage Industry coupled with meaningful legislation namely: Dodd Frank Act and the newly created CFPB have clamped down speculation to a large degree.
Keep encouraged, good luck in whatever road you take.
