The Power of Millennials
Not everyone welcomed the Government’s removal of stamp duty for first-time buyer purchases up to £300,000 – and on the first £300,000 of properties costing up to £500,000 – but the initiative may add a valuable piece to the property puzzle being enjoyed by the under-thirties.
Millennials are more likely than any other age group to invest in property crowdfunding, casting doubt on assumptions that twenty-somethings have too little disposable income to save or invest – or else spend their finances on avocados, which simply couldn’t be further form the truth.
Findings show that over half (54 per cent) of people who invest in property crowdfunding are aged 18-30.
This outstrips any other age group, compared to 25 per cent of people aged 31-45 and 15 per cent of those aged 46-60. The smallest cohort emerged as those aged 60 plus, who make up just 6 per cent of investors.
Some young investors also see crowdfunding as a stepping stone to becoming property developers in future, according to investor interviews; other reasons given by millennial investors include saving for a deposit for a house, or for a rainy day, and wanting to use inheritance money in a productive way.
Data gathered from 300 investors found that 160 were aged 30 or younger.
A lot of people will be surprised that millennials are so active in investing, but young people continue to break stereotypes around finances and savings.
More than any other age group, young people are seeking out alternative investments, and property crowdfunding is a simple way for them to reap the financial rewards of a property portfolio.
For digital natives, the idea of using a property crowdfunding website just makes sense – you can see all the financials, select your properties and even invest using your debit card or by direct debit. The whole process takes one or two minutes.
Property crowdfunding is a relatively new form of investing, which allows tens or hundreds of investors to buy a share in a house. They then get back their proportion of rental income and any increase in the house’s value. It is often seen as an easy alternative to buy-to-let, giving investors returns without the hassle of being a landlord.
There is no doubt, we are in the midst of a Millennial boom!
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