How Gen Zs Can Start Saving Up for a Property Investment

When it comes to real estate investment property, the worst mindset for a Gen Z to adopt is: "I'm still too young to start investing because I can always do it later on in life."

Early investing with a real estate focus is, in fact, a great way to start preparing for the future because it builds healthy financial habits at an early age. The Gen Z today might not have the current funds for a down payment but putting a portion of their personal finance or monthly income in a savings account for a real estate investment in the future is a wise way to afford real estate earlier in their life.

Optimizing spending capacity although the Gen Z are just starting to make money, is an excellent way to take advantage of their youth. Thankfully, many of them are thinking outside the traditional real estate box and exploring options to make wise financial moves like looking up real estate management companies, real estate mutual funds, and real estate investment trusts, also researching which real estate company offers the most affordable real estate investment for them.

Here are some reasons why so many young adults can begin building their investment portfolio and real estate ventures.

1. The real estate market has plenty of property options.

Reputable real estate developers and builders have different types of real estate properties suitable to different lifestyles while offering flexible down payment terms. Aspiring young real estate investors just need to do their research to seek which investments will give them the best profit for their financial future.

2. Early property investments offer compounding profits.

Members of the Gen Z can put their money towards investing in soft launches of real estate properties so they can reap returns even before they hit retirement age. Early investment in a commercial or residential property ensures them a stable financial future.

3. Loans are easier to get and manage at a young age.

Getting a loan at a young age forces one to build a good credit standing. The Gen Z can get loans with longer payback terms and lower interest rates that they can easily manage since they are given a comfortable duration to complete their terms.

Meanwhile, here are key strategies to get every Gen Z's momentum going when it comes to real estate investing.

1. Increase income and savings

Gen Zs needs to do to stay proactive when it comes to increasing their income and savings. Whether it be getting side hustles or starting their own small businesses, expanding their means to earn is good management of personal finance. Of course, allotting a substantial amount of their income to their savings account is the key point.

2. Know where to save your money

Putting their extra earnings in high-yield savings accounts helps every Gen Z grow their money without investing it yet. The more balance they grow, the more interest they'll earn and save up for a future down payment. Consider banks and banking platforms that offer competitive interest rates to make your savings work as hard as possible and not just sit still while in their bank account.

3. Explore and learn about alternative real estate investing

A Forbes research pointed out that there is high awareness and importance among the members of the Gen Z about real estate investing through modern alternative real estate investment options. Some are gravitating towards alternative routes like real estate crowdsourcing and blockchain-based investing. Thanks to technology, these resources are available for the younger generation who don't have the finances yet to go through the traditional purchasing properties.

4. Start investing in various assets like real estate investing trust (REITs)

Gen Zs can explore how to acquire different assets be it stocks, bonds, mutual funds, bank products, options and annuities. For small investors or beginners in real estate investing, REITs are a more accessible and less expensive way to profit from large-scale properties. One also can avoid the worry of paying the total cost upfront or being stuck with low returns on investment if they want to sell early. REITs available in the country to date are: 

• Ayala Land REIT (AREIT) 
• ​Filinvest REIT (FILRT) 
• Robinsons Land REIT (RCR) 
• ​Double Dragon REIT (DDMPR) 
• Megaworld REIT (MREIT)
  
  

Conclusion​
When it comes to early real estate investing, there is no one way to do it. Gen Zs need to understand too that it's not about how much they earn, but where they put their money as soon as they start earning. If they are determined to own a real estate property at an early age, increasing their savings and building healthy financial habits will help them become a property owner in time.