Owning a piece of the American Dream means owning a house. But what if there’s an easier way to own real estate? Upside Avenue CEO Yuen Yung gives two main reasons why multifamily is a smart choice for real estate investing. Are single family homes really the best investment?
The new American Dream is renting – thanks to the flexibility and mobility afforded from apartment life. You can move where you like, have resort-style amenities, and the hassles of owning a home (repairs, maintenance) are gone. We are also a transient workforce. You can move around and still find a very nice place to live close to the neighborhoods where you want to live. Baby Boomers, Millennials and Gen Z are the biggest demographic groups, and they are driving the demand for rentals.
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Transcript
Yuen: Hi, this is Yuen Yung, CEO of Upside Avenue, a wholly owned subsidiary of Casoro Group, and I’d like to welcome you to our Educational Video Series REIT Investing 101 today will be discussing why multi–family. So, why multi–family? When we talk about multi–family what we’re really talking about is housing and we’re talking about the American dream of owning real estate. And as you probably heard, owning real estate is really one of the greatest ways to build wealth in America today, and that has always been true and has always been the dream of every American to own their own piece of real estate.
Now specifically to housing, when we talk about it. a lot of times the American dream has been sold on this concept of single family homes or individual homes. But as America has continued to change and things are happening, the new American Dream today is really about renting and what you’re finding is that only real estate and having that dream of owning real estate really the opportunity is around multi–family. Today, there are more renters than they have ever been in the history of our country. Several things have driven that to be true. Number one) the demographics have really led to this desire for renting. In addition to that, because of the workforce and how workforce is done today, people are needing more flexibility and more mobility. So, let’s talk a little bit about the demographics first.
Today, the biggest renting population is the Gen Z, millennials and also the baby boomers. So, you might be surprised by the last one, which is the baby boomers. You’re thinking: well, they’re all retiring, why are they looking to rent? The reality is that they’re actually the fastest growing renting population out there today. What is happened is that people are starting to redefine what retirement means for themselves. And what we’re finding is that baby boomers today actually prefer to rent because they have complete flexibility. They can move around if they like. They get to live in resort style amenities. They can have a pool, they can have services, and the hassle of owning a home has all gone away. So, therefore they have really driven the demand for renting. When you talk about the millennials and the Gen Z, what you’re finding there is that with young people, their job opportunities are all over the place. We have become much more of a transient workforce and having the flexibility of renting has really allowed these folks to move around while still living in very, very nice places, and getting the amenities that they’re looking for.
But flexibility and the ability to be able to rent in a place where they want has really caused a boom in the renters market there. In addition, what you find is that with the Millennials and Gen Z, they’re also not looking to buy homes, and they’re looking much later to buy homes. And the main reason there is because partly there’s a lot of consumer debt both in student loans and potentially credit card debts, and the combination of those things have really slowed them down and considering actually going out and qualifying for a loan and actually buying homes. So, when you look at the overall, the demographics has really driven the demand for renting.
So, if you’re investing in real estate, you want to go where the demand is, and that’s what really helps appreciate your real estate, overall. At Upside Avenue we make real estate investing simple. We give you access of what the uber wealthy have without the headaches of managing it day today. So, check us out online at upsideavenue.com or on social media on Facebook, Twitter, or LinkedIn. So, let’s see where your Upside will take you.
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Interested in more information about investing in real estate? Read our free ebook, Quick Start Guide to Investing in Real Estate.
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