It’s no secret that investments have traditionally never really been the “cool” thing that younger generations cared much about. They have been more likely to enjoy spending their money in the short term than put it into the market or other investments. While many might think that this is true still, the younger millennial generation is actually making a significant impact on global investment markets.
Are Millennials Investing?
The answer is a little trickier than just “yes” or “no.” In fact, many sources point out that many millennials would just as soon save their money rather than have it work for them. In a Forbes report, the author listed surprising statistics about millennial saving vs. investing.
According to their data, 71% of millennials are saving for retirement, and 39% are considered “super savers,” meaning they save around 10% of their salary. However, millennials do invest, just a little differently than their parents.
Leading the Charge in Key Areas
Peer-to-peer fundraising is one of the preferred capital vehicles for start-ups and large companies alike. It’s no surprise that millennials are leading the charge in peer-to-peer investing. Millennials like collaboration and using social media to get the word out about their favourite products. Crowdsourcing websites combine both of these and are changing the way consumers and companies look at investments.
Millennials are sophisticated users of smartphone apps. Apps such as Robinhood and Stash are built with the younger generation in mind. It makes investing simple for them and eliminates all of the complicated financial jargon that turns off many young people.
The co-founder of Robinhood had a great piece in HuffPost about the trends he’s noticed about millennial investing. According to their research, they’ve found that many millennials using the app would rather buy one or two shares in 50 stocks rather than going all in on just a few. This helps them diversify their portfolios without much investment up front.
He also notes that many younger users choose brands and companies they regularly use like Netflix, Google, and Facebook. Especially when first starting out, people tend to choose companies they personally believe in rather than going with what industry insiders might tell them.
What about property investments?
Millennials are also becoming homeowners at surprising rates. According to a report from the National Association of Realtors, millennials were the largest segment of homebuyers for 2017. What’s more encouraging is that 55% of millennials see home ownership as an exciting investment opportunity according to a Real Estate Investment Survey by Harris Interactive and RealtyShares. The problem is that many people also see real estate investment as a confusing proposition. To overcome this, it’s on property investment companies to provide clear solutions and answers to their questions. Working with a company like Adpen can help alleviate many of these concerns.
What are your investment trends?
If you’ve thought about investing in property, but you’re not sure where to start, book your appointment with us today! We’re always here to give you the real answers you need to make the right investment decisions. Until then, make sure to follow this blog for more information, and follow us on social media.