The access to technology and spare time due to the pandemic is giving young adults the opportunity to invest. According to the LA Business Journal, young people are trending to invest more and are relying on fintech companies to do so. See the following memes:
During the COVID-19 pandemic, young adults began working from home and had the time to analyze and alter their finances. Money Under 30 conducted a study of millennials and young Americans aged 18 to 39 to track their spending habits and financial thought processes. Surprisingly, they found that 65% of millennials said their finances benefited from the pandemic. 70% of people under 30 said they researched investing. They used their extra time to think outside of the box and look deeply into innovative tools and new assets.
Young adults understand that investing works best over time and are making the most of their age to put stakes into assets early on.
Innovative Tools to Invest
Now more than ever, the world is looking for new ways to invest. More and more often, investors are seeing new startups endeavoring to change the investment landscape. One startup called Pacaso allows for users to invest in and co-own vacation homes in exchange for an allotted time to vacation there. Robinhood is the most well-known version of innovative investing. It’s a platform worth $11.7 M and allows for users to easily invest, keep track of their stocks and watch the market. The median age of a Robinhood user is 31, which falls in line with the trend of younger investors trending toward new, user-friendly designed financial technologies.
Ark7 emerged in 2019 with an initial seed investment of $2M. We give investors the ability to buy fractional shares in homes located in hot housing markets. We currently offer single- and multi-family properties. The best part? Young people don’t have to wait a long time to build up capital and invest; share prices start from $5.40.
One thing Mark Fergusen, a blogger who began investing in his 30s, regrets is not investing in real estate sooner. In his article on investing in your twenties, he wrote, “When you are young you have more flexibility in life, fewer commitments, and can take more risk.”
Way More Than Just Stocks
Younger generations are more open to new ideas and more trusting of new systems. This can be seen with cryptocurrencies like Bitcoin that amassed popularity due to their promise of wealth without heavy work. 5% of millennials say they think Bitcoin is the best way to invest for the future compared to 1.2% of Gen Xers. Although many people disagree with this statement, this optimism around new financial tech is promising for the future.
The definition of investing has expanded over the last decades. The markets are constantly changing and the meaning of value has changed significantly. Instead of just the stock market, there are now markets for everything from designer bags to wine. Developers took note of this and created new platforms to help manage these new assets. Vinovest shows how wine has had a higher return rate than the S&P stock market since 2000. In 2020, Forbes declared designer bags a better investment than art.
One thing that seems to never lose its value is housing. We all need a place to live and call home. There will always be a need for housing, which guarantees demand. The supply of housing is what makes the market so intriguing, as there are only so many homes and spaces to build. Time is of the essence when it comes to real estate investing, and young people are understanding this fact and finding their own ways to begin investing in real estate.
Ark7 is a platform that allows investors to get started in real estate with no minimums. Explore the hottest new investing options like Ark7 by signing up today.
