Born between 1980 and 2000, millennials have entered the “adulting” stage and are now in a better position to make long-term investments. With their sizable income and drive to achieve life goals, millennials are starting to look into real estate, checking out different house options that meet their lifestyle aspirations and financial considerations.
Millennials, to be specific, are now considered as leaders of the home-buying pack. They are redefining the real estate market with their unique needs and specific preferences. As they continue to steer the direction of the housing market, it is crucial that real estate developments and brokers understand deeply the millennials’ predisposition when it comes to investing in properties.
Here are some insights from millennials who have invested their hard-earned money in real estate, in case you want to dig more into their lifestyle inclinations and decision-making factors:
- Dual Purpose
Jayce Clemente, founder of Arc.Deco, a start-up architecture firm, started to look for a condominium in preparation for her new venture. “I needed a private place where I can work,” she said.
As an architect, Clemente already has a ready list of what she wanted: a low-density condominium that offers a two-room unit. After a thorough research, she found exactly what she needs in a home right on the quieter side of Cubao in Quezon City near her parents’ house.
When she went to see the condominium’s model unit, Clemente knew right away that she found the unit that suits her preferences. She immediately paid the reservation unit to secure her slot. The rest, as they say, is history.
Clemente is a perfect example of a millennial who is really specific in what she needs, and does her homework before she finally decides to invest in her property. She puts high premium in work-life balance, wherein she can take advantage of the usability of her personal space as her home and office. Thanks to the internet, millennials compare prices and condominium features before they head out and sign the contract. But once they find what they are looking for, they are in it for the long haul.
- Adaptability
The country’s worsening traffic problems is one of the factors that prompted Sarah Torres to buy a condominium unit near her husband’s workplace.
Torres, the owner Sarah’s Artisanal Treats, an online business that offers locally made spreads and honey, said that as a couple, their primary concern is location.
“We want to lessen travel time and avoid traffic. And we also want to be near establishments like supermarkets, and drug stores,” she added.
Strategic locations are enticing to millennials, especially to those who prefer walking or riding a bike to their workplace. Likewise, a condominium’s accessibility must also be considered and its proximity to different modes of transportation. Sarah’s case is a classic example how millennials face their everyday woes head on, adapting their life-changing decisions into practical solutions, such as adjusting to the common hassles brought by Metro Manila’s traffic.
Make sure you highlight that you are adding value to their lives, solving their current problems with the investment option you are pitching to them.
- Entrepreneurial Mindset
The growing popularity of short-term lodging gave Revbrain Martin an idea how to make the most of his house and lot located near Nuvali in Laguna.
Martin, co-founder of Food Pak Ganern, a food park in Obando, Bulacan, said that he initially bought the house for himself and his family. But sudden changes in financial circumstances eventually led him to the idea of putting the property for short-term lodging.
He has entertained the idea of putting his property in an Airbnb listing, so that it can generate profits which then can help him handle his mortgage payment and other expenses.
If you are tapping millennials to be your long-term customers, it is best to present options on how they can maximize their investments- be it properties or long-term product purchase. While they can do their own research, it is best to present them with a list of risks and opportunities as they truly gravitate towards transparency when making a purchase.
There is no single solution that will cater to the varying preferences of millennials. The best way to assess their needs is to sit down with them and talk about their expectations. Even if they already did their research digitally, they would still want to hear how their money can work for them.
In the end, choosing a house is more than just putting a roof over one’s head. It means entering a long-term commitment and consuming valuable resources such as time and money. Therefore, it would also be beneficial to discuss with millennial clients about how they can work with the developer’s terms without having to compromise their own.
Homeownership is a big step in general for anyone, not just for millennials, as it could have a strong impact emotionally, mentally and financially. But just like any other significant life events, it can be a rewarding and fulfilling experience. Knowing the mindsets of your target millennial market towards investments can help you cater to them in a maximized way, as you make their property investment experience a genuinely amazing life milestone for them.