People who belong to generation “Y” are those born in the period from the early 1980’s to early 2000’s. They are more popularly known as the millennials. They are characterised by their excessive attachment to and dependence on their gadgets. They are the typical definition of being bonafide “netizens” who are too connected to the digital world. They breathe and live the internet. Their playground is the social media. They relate, communicate and transact online.

They however tend to put aside important life altering decisions like marriage and building a family, subsequently putting the desire to own a home at the back burner.

In light of this, I came up with this blog entry for millennials to consider re-thinking their priorities in terms of acquiring real estate properties.

    1. SHELTER vs. GIZMOS
      investmentLevel of importance – One basic physiological need of a person is shelter, a roof above his head to ensure his safety and well-being. Gadgets, while also an essential tool, need not be too fancy or expensive. There are people who always want to have the top of the line gadgets equipped with features they don’t really need.
      Depreciation/Obsolescence – The latest technology today will be replaced by a new model in a few months time. Real estate property, in contrast, generally appreciates overtime.
    2. LOAN TERM
      late retirementAvailing a housing loan at a younger age allows you to have a longer repayment period at a lower monthly payment. Conversely, as you get older, the loan term
      becomes shorter at a higher monthly amortization. Settling for a longer repayment period means having a late retirement. Chances are, you’ll still be working hard and paying your property when you should already be enjoying the fruits of your labor.
    3. SCARCITY OF LAND
      condominiumUnlike gadgets, real property cannot be fabricated. This scarcity of land in the metro has resulted to increased value of properties. To make it more affordable, developers are building more vertical developments to maximise living spaces. There are also rent to own payment schemes available to buyers.
    4. SAFER INVESTMENT
      contractInvestment in a friendly term/amortization – Not an outright investment. Since buying a property need not necessarily call for lump sum outflow of cash but rather a scheduled, friendly and relatively affordable periodic payment, the threat to your finances is at bay.
      Hard tangible investment/asset – Real estate property is real. It is physical. It is immovable. Your money is backed-up by something tangible. Something that cannot easily be lost or stolen. This type of collateral does not disappear in thin air when the going gets rough and tough.

As the classic real estate question goes (no plagiarism intended):

“When is the best time to buy property? The answer is — 20 years ago. When is the second best time to buy? The answer is — NOW!”