Many people may be surprised, but millennials are all adults now. The oldest in the millennial generation are or will be turning 41 this year, putting them in an age bracket where investing in a luxury home is highly probable. But is luxury real estate really the next move that older millennials are making?
Over the last decade, much has been said about millennials. Most of the observations are unflattering to the people who belong to this generation, usually voiced by an older generation who have found it difficult to keep up with the changing times. Millennials have often faced the ire of older generations for being innovators and changing the status quo. But millennials truly want to see the world become a better place through their collective action.
According to a study conducted by the Pew Research Center, millennials are people born between 1981 and 1996. They are part of Generation Y, and the term “Millennial” came into popular use as these individuals were born or came of age during the dawn of the 21st century or the “New Millenium.” Individuals born in 1997 and onwards are considered part of the next generation, who are colloquially called Generation Z (or Gen Z for short).
But aside from the year of birth, several other factors make up the millennial identity. These include key political, technological, economic, and social factors that define the millennial generation’s formative years. These factors then went on to influence the millennial generation’s spending habits, career trajectory, investments, and retirement plans.
Millennials would have been between 5 and 20 years old when the terrorist attacks happened in New York. A huge part of this generation would have been at an age when they could understand the huge impact this event created across the world. This generation also came of age under the shadow of the wars in Afghanistan and Iraq, which further broadened their views on politics and globalization.
This generation also came of age or entered the workforce during the economic recession of 2008, which was dubbed one of the worst global recessions since the Great Depression in the 1920s. As one of the demographics heavily affected by this economic recession, millennials suffered long-term consequences to their finances. This also shaped the direction they took when it came to life choices, future earnings, investment, and home ownership. This recession was also the catalyst that made millennials choose a different path than that of their parents.
Millennials were witness to several technological advances. Most older millennials will be familiar with cassette tapes and floppy disks, while Gen Z will have no nostalgia connected to these items. Many millennials spent their childhood playing in the streets with their friends. Cellphones and computers were relatively new, but they were not a huge part of daily life as they are now. This generation witnessed the different changes in technology, quickly adapting to each new innovation as it came. They grew up with mixed tapes, which turned into CDs, then iPods. This generation also saw the birth of the smartphone and the explosion of the internet, both of which have changed the way people connect with each other.
Due to a decades-long trend of wage stagnation and decreasing labor market mobility, employees got paid less. This was bad news, especially for members of the millennial generation who were just entering the workforce. This meant that during the early years of their career, they were not earning as much as they could have, and the years of low wages set them back in the long run.
Adding this to the rising cost of education means that millennials often delay purchasing or investing in things that were the typical life milestones celebrated by previous generations, such as a new car, luxury real estate, jewelry, and other luxury goods.
Due to financial stress, millennials began to value things differently compared to the previous generations. While Generation X or the Baby Boomers would work for years and wait until retirement to enjoy their hard-earned money, millennials often choose to live in the present by enjoying things while they are young rather than wait until retirement in old age. As a generation, they valued work-life balance and temper their fun with a robust emergency fund.
The recession and increase in the wealth gap meant that most millennials entered the workforce with a substantially diminished household income. So, most millennials focus on earning enough for day-to-day living expenses and paying off debts.
Many millennials also turned to doing gigs or juggling part-time work alongside a different full-time job as a way to increase their income. Most have also become entrepreneurs to augment the salary they receive from their main job.
Recent studies have also shown that millennials have thrived on a hybrid workplace setup. Having the option to work remotely has been beneficial to their careers, and compared to other generations, they were able to pivot more easily into the latest technology that facilitated remote work.
Compared to prior generations, millennials have been raised in a time of political and financial instability. Their age group naturally became wary of investment, entering the housing market, and purchasing big ticket items. But as technology, the internet, and social media become more accessible, millennials are eager to learn the different ways they can improve their financial well being and secure financial independence.
What is interesting about this age group is that millennials tend to value personal recommendations and feedback from people they know over ads and traditional marketing. This heavily affects their spending and investing habits because millennials tend to make decisions based on information they receive from a trusted source rather than a generalized marketing campaign. This approach to investing and spending helps millennials make the most of their money and avoid the mistakes that prior generations made.
Millennials take advantage of online resources, apps, and social media to make their investment decisions. The wealth of information available online makes it easier for them to navigate what type of investments they want to make. It also allows them to follow financial advice from a diverse group of people.
The oldest millennials are entering their forties, which is part of the peak home-buying years. By this point, millennials have earned enough and saved enough to invest in luxury real estate, such as the properties offered by Brittany Corporation. Investing in a high-end home is a smart decision as it grants stability and security to you and your family. Raising a family in a secure environment, such as the exclusive luxury enclaves of Brittany Corporation, allows children to grow up in a community where they can let their imagination run free.
Another upside to investing in a luxury home is that the value appreciates over time. Luxury real estate is more reliable on the market compared to other emerging markets like cryptocurrency. Buying multiple properties and renting them out or selling them can give millennials a reliable source of income, which can fund their lifestyles even unto retirement.
Just because property comes with a high price tag does not automatically make it luxury real estate. True luxury comes with exclusivity, an ideal location, access to amenities, proximity to the best shopping and dining establishments, and security. Brittany Corporation has been developing luxury properties for several years, and they are a leader in the industry. The best kinds of luxury properties that millennials can invest in include a home or a luxury condo in a vacation destination, houses in a trophy address, and an exclusive enclave in an idyllic area. Brittany can offer millennials these types of properties with their developments in Tagaytay, Alabang, and Santa Rosa.
Crosswinds Tagaytay is the country’s only pine tree estate that is inspired by the Swiss Alps. This luxury community features a Swiss resort hotel as well as luxury condo developments built by Brittany. Tagaytay is a favorite vacation spot of many who live in the metro. The appeal of a cooler climate, majestic views of nature, the calming scent of pine trees, and delicious food make Tagaytay a prime spot for a quick weekend getaway.
A millennial who chooses invest in a luxury condo in the Crosswinds Tagaytay estate will have a home in Tagyatay they can escape to when life in the city gets too stressful.
Living in Alabang will mark you as someone who enjoys the luxury lifestyle. And a Vista Alabang address will give you an Italian lifestyle without having to go abroad. Vista Alabang is Brittany’s gorgeous Italian-themed exclusive community in the south. Comprised of three enclaves, namely Portofino Heights, Portofino South, and Amore at Portofino, residents here enjoy the feel of a summer at the Italian Riviera all year round.
Feel enchanted by world-class homes that celebrate old world Italian charm with architectural details such as gabled roofs, cupolas, wrought iron, and exposed stone walls. The community also has several cobblestone paths and fountains to truly transport you to Italy.
Brittany Santa Rosa has several luxury communities, some inspired by the grandeur of the American south, while another is inspired by the quaint English countryside. Both locations feature grand mansions and generous open spaces that allows you to live in close proximity to the calming effects of nature. The luxury communities of Brittany Santa Rosa are tucked away from the hubbub of the city, making this an idyllic place to build a home where you can fully relax. One of the best things about finding your dream home here is your home’s proximity to some of the best golf courses in the country.
Millennials are a unique generation, and their collective experience as they grew up shaped the way they move in the world today. Their career trajectories, spending habits, and investment decisions differ greatly from that of their parents’ generation. As millennials come into their peak home-buying years, investing in luxury real estate is now a possibility for them.
As a millennial, purchase your first luxury home with Brittany Corporation! Choose from our luxury listings in Tagaytay, Alabang, or Santa Rosa and invest in a secure future for you and your family.
READ NEXT ARTICLE: 2022 LUXURY REAL ESTATE MARKET FORECAST
