Tuesday, 23 October 2018
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This Old House - Do-it-Yourself

Is Real Estate The Holy Grail of Millennial Diversification?

Written by Posted On Tuesday, 21 August 2018 18:03

I'm a millennial. I like my avocado toast, I have my own blog, and I use Instagram religiously. Sounds obnoxious, right? However, I'd like to think that I'm a cultured and crafty Millennial (which isn't a total oxymoron). That's because I have no debt, am happily married (does anyone in our generation get hitched before age 30 because I sure did), and I actually love my career.

So, even though I'm in the essence of FOMO and annoying viral videos, I'm also a compassionate and thoughtful young adult who wants to leave the world better than when I came into it. I believe my generation has unlimited potential and opportunities that no group of people before us had available. I also believe that, in a time of quickly-changing trends and fads, diversification (in our professional lives) is more important than ever before.

The Movement Away From the 9-5 

Our jobs aren't our parents' jobs, which means very few of us obtain the benefits of lucrative pensions and 40+ years of working for the same employer. In fact, I read that the average adult now changes their career 5-7 times throughout their working life. In other words, career loyalty is all but dead, and the workspace has expanded into a vast cesspool of opportunities, growth, and movement.

Today, you don't need to work in a brick-and-mortar location to make a good living. You don't even need to work in a location at all. With so many independent contracting and freelancing positions available, sometimes all you need to start your own business is a plan, Internet connection, and hustle.

The Passive Income Obsession

A quick Google search on 'how to earn income passively' will yield you thousands of results in a nanosecond. Even though it's not a new concept, it's a relatively hot buzzword that we're hearing in circles ranging from financial independence communities to entrepreneurs to real estate gurus. 

That's because passive income, by definition, is enticing. The idea of creating business and income without having to put in the active work and labor is about as good as it gets when it comes to improving and maintaining financial health. Fortunately, today, we have more options than ever for building these 'passive income' empires. 

Investing

It's not your father's financial advisor, and for a good reason. Today, I can invest using a few clicks on the computer, and a Google search can essentially teach me everything I need to know. With the stock market averaging about a 7% return at a given time, it's never been easier than ever to let your money grow- without having to really lift a finger.

If you've got a knack for real estate (like I do), REITs make a great passive income option- you yield all the benefits of the market's successes without all the hands-on work that come with being a landlord. 

Real Estate & AirBNB

You don't need to be a multimillionaire to become a real estate guru. You don't even need a traditional broker! In fact, one of my best friends built his real estate empire while he was still in debt and with abysmal credit because he had a rock-solid business strategy and grit that wouldn't quit. And at the risk of sounding like an infomercial, yes, he's quadrupled his traditional 9-5 income in less than a year. He loves being a landlord, but plenty of people don't. With an excellent property manager, you don't have to worry about any of the stressors or headaches associated with homeownership. 

AirBNB is another avenue that more and more people my age are gravitating towards. In fact, it's an avenue I hope to pursue in the near future. Even though it's not necessarily a traditional 'passive income stream,' you can learn to automate the process fairly quickly. 

Ebooks, Subscription Services, and Downloadable Content 

My husband and I are currently in the process of writing our first ebook. It's an exciting pursuit, and even though it may generate zero income (okay- except for my mother and all her friends), that's beside the point. Back in the day, you had to move through the route of traditional publishing, pitching, and securing an agent to promote your work.

Today? You can outsource a graphic designer and editor and quickly slap a book onto Amazon- all within less than 12 hours. You're also able to generate a higher level of revenue than with traditional publishing. If that's not a win-win, I don't really know what is.

Limitless Housing Arrangements

If I had a dime for every time I read the quote, millennials can't afford houses, I'd be able to buy any house I wanted on the planet. Okay, this may be a slight exaggeration, but I digress. Today, we're more digitized and mobile than ever before.

From tricked-out campervans to the tiny home TV series, we're getting more and more creative- and spending less and less. In fact, there's an entire movement of people following the digital nomadic lifestyle. While this has always been a 'thing,' it's now becoming more of a Pinterest and Instagram-worthy dream. 

We may not want to live in the McMansions are parents drooled over, but I do believe we're following a path of practicality, affordability, and creativity. I don't know anybody who really cares about their home's square footage or zipcode anymore. Rather, we're more about making the best of what we have- whether it's a condo, apartment, split-story home, or used van. And, I think that's what makes real estate and our generation so exciting.

We're making home a feeling- not just a place with a physical address. And what's more hopeful than that?

 

 

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