Real estate investing could be far more important to Generation X than most realize. So what unexpected financial burden is hiding in the shadows for this population? How can investing in real estate be used to skillfully prepare and navigate these challenges? The solution to future financial problems is real estate investing.
A huge amount of financial and business advice is being aimed at Millennials, and serving them. Some real estate industry thought leaders are even honing in on Generation Z. They are important too. However, Gen. X is bouncing back from the recent crises and their future is uncertain.
The real estate industry can’t afford to neglect this generation. Many took a hit during the financial and foreclosure crisis, but they are now getting back on track. They are likely to be amongst the most powerful home buying and financial force over the next few years. Their credit and incomes are coming back, and they desire to acquire homes that fit them. They also need to invest in real estate to be prepared for life’s big pivots.
If they haven’t encountered issues yet, members of Generation X will soon run into a slew of financial burdens, needs and wants that many haven’t accounted for. The most pressing may be taking care of aging parents. Their parents also took a hit to their retirement plans in recent years, and most haven’t had the luxury of making the bold moves required to make up the losses yet. This can mean little to no income in retirement, soaring medical expenses, age impacting ability to work or generate income, and simply hands on care. Their children are often going to have to step in to help out, pick up bills, help them keep a roof over their heads, and just be there. This generation might be better prepared financially for this period in their lives, yet when compounded with having to take care of parents can add an incredible burden to Generation X.
None of the above touches on the biggest and most obvious concern pressing Gen. X – their kids. All of the above is in addition to trying to provide for immediate children’s financial needs and futures.
Fortunately, real estate investing can help. Real estate investing can help provide extra income to soak up these additional financial demands. It can deliver significant lump sums of cash to cover those big ticket events: births, college, medical bills and more. It could provide a much needed place to live for immediate and extended family members. Real estate can help build passive wealth to pass on. Plus, just as importantly today, it can work to do all this without having to be present or clocked in all the time. This provides the freedom to gain the best investment returns while being there for critical life events and family needs, as well as enabling ongoing income.
Obviously, there are many methods of real estate investment. Owning a home is a great start, but it is limited in that it needs to provide for the family and is not as flexible for providing for other needs. There is real estate wholesaling for generating large lump sums of cash. Income investment properties can provide ongoing passive income, as can private mortgage lending. Then there is rehabbing, and fixing and flipping houses, which can produce money, help provide affordable housing solutions, and teach family members skills they can use in the future.
Real estate is critical for aiding Generation X in their upcoming life and financial needs. Real estate professionals need to realize the importance of serving this generation. When the two get together, there are many solutions.
