Young people are upskilling in their personal time like you wouldn’t believe. Ask a young person about online shopping and they could write a sophisticated book on it or anything else that is being sold online.
Less young people are finishing university in pursuit of their own financial ambitions. Many are working to invest, instead of working to save and it may work in their advantage.
In the past five years you will have noticed an increase in the entrepreneurial spirit, it has swept across social media platforms like Instagram and LinkedIn. You probably know someone who has given it a crack.
More young people now are investing in the stock market or these online based businesses taking advantage of social trends and leveraging their social networks. The barriers to entry for starting an online based business are fairly-low and decent returns on investments can be achieved from investment’s as low as $5000.
Many young people are seeing profitable results in a matter of month’s after investing in online education provided by online provides like Udemy or Brilliant. These platforms provide courses for a nominal fee and can be completed online from your smart phone or computer.
Young people continue to work in their jobs which may not pay the ideal wage, nonetheless the economic activity does ‘pave-the-way’ for reaching that ultimate goal of owning a home.
Young people understand that rent goes into someone else pocket compared to paying off a mortgage or investment property. This money sense wasn’t taught by their parents or in school most of the time but participating online.
It’s a new time in Australia, where young people are able to maintain a reasonable standard of living by investing in second income streams whilst using social media.
Young people now have access to a variety of retailors online which are shipping based, offering hygiene, clothing and other essentials for lower costs as they do not have to pass on the all the costs that traditional retailers have.
There are also apps available on smartphone which allow you to save when you spend. For example, if you make a purchase of $3.80 it will automatically round up $0.20 to be placed into a managed fund allowing you to passively save over time without hassle.
With more options for young people to save or invest for their first home, housing market participants can expect a disruption in the housing market in the next 10 years with more houses being bought with second -income rather than the traditional wage.
The question is, will young people use this income to purchase an investment property and continue to rent or would they rather purchase their first home to build equity and then purchase their investment property.
From my view, I’d rather build the passive income first with an investment property for that flexibility without being committed to a first home mortgage. My goal would be to build a second income which is equal or greater to that of my traditional job, that way I have the security of my employer as well as my side incomes. Giving my more options, convenience and flexibility with that I want to do.