New York, NY (PRWEB) July 31, 2013
Tobias Nergarden, CEO and director of the Real Estate Marketing Insider, announced the publication of a statement outlining his recommendations for the best real estate sites and markets for young investors making an entry into real estate investment. Mr. Nergarden’s announcement came on the heels of a July 18 story in The Wall Street Journal which reported that wealthy young professionals are increasingly turning to investment opportunities in real estate rather than the stock market.
The Wall Street Journal piece reported that young professionals, particularly in the Southern California area, are purchasing high-end or luxury properties at higher prices, and at a higher pace, than most realtors have ever seen. The average young buyer is showing an interest in more expensive properties and is likely to buy multiple properties. This is generally a sign that the young buyers are not only purchasing personal housing, but using real estate for their initial forays into investment. As the millennial generation comes into real wealth for the first time, the wealthiest millennials are choosing real estate over the stock market or other options for their investment opportunities. According to the Wall Street Journal, the explanation for this phenomenon is simple: younger buyers are less trustful of the stock market. With home prices just beginning to rise (but still quite affordable) and financing available at relatively low interest rates, wealthy 20- and 30-somethings have more purchasing power than ever in the real estate sector, and it has made for a jump to real estate as the go-to investment opportunity.
Here is the text of Mr. Nergarden’s statement: “Young investors with good startup cash can get their start literally anywhere in America. However, for your first investment purchase, there are some markets that are better than others. You want to choose a property in a location that has potential to grow in value and pay dividends. These can include tourist properties like San Diego vacation rentals, residential properties in high demand like those in New York City or the San Bernardino Valley, or part-time properties in high-traffic vacation spots like Aspen or the Hamptons. For your first investment, consider which of these markets you’d most like to keep a presence in.”
The CEO of the Real Estate Marketing Insider released a statement offering young investors advice on their first property investment. Mr. Nergarden advised that first-time investors consider tourist or vacation properties, or high-price residences in major cities.
About the Real Estate Marketing Insider:
The Real Estate Marketing Insider is an online real estate publication based in La Jolla, Calif. The Insider features news, analysis, and opinion about the North American real estate market.