Interest in real estate has steadily declined since 2008’s housing crisis. Prospective homeowners are turning down investment opportunities in real estate and permanent homes to rent temporary rentals because of price inflation. You may purchase expensive items and other assets using solely cryptocurrency.
This is a fact that is perhaps more evident than it seems with Millennials, the tech-savvy, educated, 22- to 36-year-olds who are least likely to invest in bricks and mortar. This newfound hesitation can be attributed to many factors: high costs of purchasing a home, rising living costs, increasing median home prices in urban areas (where students are more likely to find higher-paying jobs), and mounting student loan debts. Postponing marriage and having children are also contributing to delays in buying a home.
What are they doing with their salary? A Charles Schwab report shows that they spend their salaries on student loans, rent, travel, gym memberships, comforts, and conveniences like taxis, coffees, and eating out. What are they doing with their investment money? According to BankRate, most of them are currently investing in stocks or bonds.
Millennials, who were raised during the recession, are less likely to buy homes. Most people are shocked to learn that the current state of the realty industry is very different from what was inherited by the Baby Boomer or Gen X generations. It is simple: Housing is getting more expensive and traditional assets are less affordable to regular Millennials.
The median US housing price was $65,300 in 1970. It has increased to $119 600 in 2000 and $255,000 by 2018. In today’s unstable and turbulent economic climate, even those who have high salaries can not afford high mortgage premiums.
Millennials (40%) are more likely to go to college than Gen Xers (32%), and Baby Boomers (26%). This means that many are forced into urban areas with limited real estate and expensive housing. Asset managers who have stacked real estate portfolios usually offer only investment slices to high-net-worth, experienced investors.
The millennial generation is calling for change. We saw the rise of security tokens (cryptocurrencies that represent real-world assets) a few weeks ago and how they could be used to allow partial ownership in luxury hotels. This new asset class is now possible to allow Millennials to invest in real estate.
They are used to living in the throes of innovation and can quickly adapt to new technologies. Millennials use the internet at an average of 97%, compared to 83% for Baby Boomers. 90% of Millennials have a smartphone, compared to 67% of Baby Boomers.
Is cryptocurrency the key to attracting millennial real estate investors once more?
This openness to technological advances makes cryptocurrency attractive.
Individuals can buy parts of traditional real estate and assets by using security tokens. These are digitally regulated representations of equities and debts. Why bother? It allows partial ownership. digital tokens can be described as the digitalization of stocks or paper shares. This allows individuals to invest in a small amount of a promising real-estate opportunity with a group.
This is a much more affordable financial option for Millennials who don’t wish to take out a multi-decade loan during their career. It won’t always lead to a new house for them, but it could lead to a greater return on their investment which in turn will increase their desire to buy real estate in the future.
The potential for significant financial gains from cryptocurrency linked to real-world assets that are increasing in value over the course of time-based on property forecasts and rising market demand will make it possible for people to subsidize their living costs and pay off student loans. This will help them build a foundation for future investments.
Security tokens also help to alleviate liquidity problems when buying or selling traditional assets. If an owner wants to sell a house or an asset manager wants to sell a multistory building, there are only a few buyers who are interested in participating in the bidding process. It can also be very time-consuming if the buyer wants to sell their stake later.
Today’s housing market is dominated by payment processors, banks, brokers, middlemen, and middlemen, who make their money by processing our transactions. This leads to increased costs and high processing fees. Security tokens are free from intermediaries due to the nature of cryptocurrency underlying technology. This significantly reduces overhead. Although millennials may not be ready to purchase homes or investment properties right away, they might find that security tokens offer a positive way for them to explore a market they aren’t familiar with.
The venture allowed micropayments and engaged a previously unknown pool of young participants who were interested in real property but didn’t know where to start. Accredited investors are people with a net worth exceeding $1 million USD or who make more than $200,000 USD per year, and the offer was made in accordance with the securities regulations.
Although most Millennials don’t make this much money, it’s a positive step in the right direction for a market that is desperate for capital. The $18 million maximum that was allocated for security token investments in the hotel was sold on Tuesday, October 9.
Even before security tokens were invented, 30% of Millennials preferred cryptocurrency over stocks and bonds. They are also five times more likely than other generations to believe that cryptocurrency is the best way for them to save for the future. Real estate firms and asset managers should consider ways to incorporate cryptocurrency in their business practices to better market themselves to younger customers.
Some platforms allow you to buy luxury goods and other assets with only cryptocurrency. The future of asset-sharing is cryptocurrency. This future promises to create a stronger housing market, with more access for money-conscious Millennials and a stronger housing market.
These tech-savvy, younger individuals are paving the way. With cryptocurrency linking itself seamlessly to physical assets, real property can take a position that it hasn’t had in a long time.