Millennials encouraged to take action on their wealth goals

Millennials concerned about housing affordability need to take urgent action on their financial future, according to Gen Y property adviser Nidal Rasheed.

Nidal is Managing Director of Silvertail Property Group and said Millennials were not the entitled generation but were living in an era where it was harder than ever to own a home and “things don’t look like they’re getting easier”.

“We’re the ones who have to carry the debt for previous generations and I don’t believe our retirement will be same. However, we need to stop putting off decisions and act,” he says.

“What we find with a lot of younger investors is: they wait for someone to inspire them to make a decision about investing.

“Often a Millennial might hear success stories like ‘the 21-year-old who has bought seven properties’ and be inspired by that. They take a few steps into some financial planning, but the minute it gets hard, many of them give up.

“Younger buyers and first home owners can in fact have some advantages other property investors because they may be eligible for a 97% loan and a grant from government for construction. They may also receive stamp duty concession.

“This means they need very little money out-of-pocket to get into their first home which in many cases could serve as a stepping stone to bigger and better opportunities later in life.”

Nidal says younger investors could stick to a five-point plan:

1.       Become aware of your current financial position and be accountable to your financial future – “there’s no point trying to blame society or the Baby Boomers or the government, you need to take charge,” Nidal says.

2.       Decide how you want to improve your situation – do you want to work longer hours, set up an online business, invest in shares, invest in property? “If you haven’t mentally committed to some action, it’s never going to hold any weight”.

3.       Seek advice – find some professionals that have done what you want to do; or find a mentor or coach to guide you. “You could begin by meeting a financial adviser or accountant to start pointing you in the right direction”.

4.       Act – when an opportunity presents itself, take it. “Apply for that finance pre-approval, make an offer on a property, buy some shares.”

5.       Evaluate – this is where a lot of investors fail; they make a decision but if their investment plan doesn’t immediately work out, they give up. “If it’s not working as expected, you need to rejig your plan. It’s also vital to have the right expectations and understand there’s no such thing as overnight riches especially when it comes to property – it’s a long-term strategy,” Nidal says.