A new avenue for the millennial

Depending on how much you are ready to invest, your risk appetite, and the regularity of cash flow, you can make a decision

Every young investor wants to find the greatest investment avenues accessible so that they may earn the best return in the shortest amount of time with the least amount of danger. Some people invest for financial security, while others invest to achieve specific investment objectives.

Your investing options should be based on your financial goals, investment horizon, risk appetite, and liquidity requirements. This is why young investors are always looking for an ideal investment opportunity that will allow them to multiply their money in a short period of time while posing little or no risk. The very mechanics of making an investment have changed dramatically; a possible cliche used to be that only mature people from the business clique invest heavily.

However, there appears to be a shift in the works: young people are jumping on the investment bandwagon. In this age of investing in cryptocurrency, NFTs and SIPs, etc. investing in real estate has become more crucial than ever. There has been a shift in the mindset of owning a physical asset which they call it “home” is a must today.

Residential real estate sales in Mumbai are not only greater than pre-COVID levels, but they are also at their greatest level in the last 10 years in December 2021. The demand for buying homes among young adults has surged compared to pre-pandemic levels, as mortgage rates hit a multi-decade low, and more of them expect to work from home regularly or permanently in the future. Studies suggest that these young adults, also known as millennials, are shifting their spending habits from borrowing for lifestyle and recreational purposes to important needs such as a new home and family medical emergencies. According to a study conducted, millennials are the group most likely to work diligently toward their long-term financial goals. They were putting off buying a home for multiple reasons, but the millennials are the contenders and are far from absent in the real estate market today. The millennials who currently do not own a house, majority of them have expressed a desire to purchase.

The key factor that will make the millennial dream of owning a home in Mumbai, a reality is the present interest rate regime and various other state government initiatives that have given a boost to the real estate sector. The millennial buyer may now realise his/her larger home ambitions distant from the city to fit his/her remote WFH and their children’s online schooling in expanded suburbs of the city, thanks to the simple availability of finance and having experienced the flexibility and commute-free remote job. The combination of record-low mortgage rates, which have little room to fall further, and government incentives bode well for millennial buyers of first-time homes as well as those wishing to buy a second home as an investment.

The enormous infrastructure developments currently underway in Mumbai and the surrounding areas will be important in assuring India’s financial capital’s growth. As a city that is home to some of the country’s largest corporations, this development will aid in fostering further commercial expansion across the region by reducing the average commuting time for office workers, thereby addressing the city’s citizens’ quality of life. This will in turn create more job opportunities for the residents and change the outlook of the city in the next five years.

The various moves pertaining to the infrastructure as announced in the Union budget of 2022-2023 and the decision of unchanged repo rate yet again will not only help to expand the affordable housing market, but it will also encourage many more people to invest in their dream homes.