For the last 30 years, Cindey Nordman has worked in nearly every area of real estate, from property management, construction, investment, and helping individuals and families find their dream homes. Today, Cindey is amongst Ponte Vedra Beach’s top real estate agents.
While not buying or listing homes, Cindey devotes her time to helping others make savvy real estate investment decisions. According to Cindey, real estate is one of the best investments a young millennial can make, and there are a few strategic ways to maximize that investment.
Here are tips for millennials looking to invest in real estate:
- Buy much lower than what you qualify for.
Whether the millennial buyer is single or not, buying below what they qualify for is almost always the best decision if building wealth is the long term goal. If an individual qualifies for a $500k home, they should look at homes in the $300k range. “Think of your first home as a stepping stone to getting where you want to be in the next 5 -10 years,” says Cindey.
She recommends that millennials buy the $300k home and live in it for a few years. When they’re ready to move on, they can rent it out but now they have this home to add to their portfolio and a means of bringing in additional rental income each month.
- Consider buying a duplex.
A duplex is one of the best investment decisions a young person can make, according to Cindey. An individual or couple can buy a duplex, live out of one side and rent the other. In many cases, the rental income will pay their entire monthly mortgage! Just as with the single-family home, the millennial investor can live in the duplex for a few years, move on, and then bring in rent for both sides. This process can be repeated again and again and scaled exponentially.
- Think long term.
While it can be tempting to have your first home be your dream home, thinking in the long term is the best way to build wealth. Cindey speculates that in the next few years, the number of renters will increase significantly as people have lost jobs due to the pandemic and industry norms are shifting. Owning rental property will be one of the best ways to get ahead and build lasting wealth.
With interest rates at an all-time low, first-time millennial buyers have a distinct advantage. These interest rates won’t last forever. Visit her website cindeynordman.com to learn more about real estate investment or buying a home with Cindey Nordman.