Even though the Gen z still has a very long time before they retire traditionally, most of them are setting aside funds for the future. A recent survey carried out by GoBankingRates discovered that 76% of Gen Z adults are currently saving for the future.

This survey also revealed where these GenZ folks are depositing their future funds, and up to 31% of them have real estate investment, which is far greater than millennials which is just 20%, 16% of older millennials, 29% of boomers, and 21% of Gen X.

How is the Gen Z getting into real estate?

Gen Z can get started in real estate investing in a number of ways, the most common of which is through purchasing real estate.

For individuals who have a burning urge to own a home, there are subsidies and programs that can help make homeownership more accessible, according to Christian Mills, Reverse Mortgage Funding's director & financial relationships planner.

Real estate investment trusts (REITs) are a wonderful choice for people who may not yet have sufficient money accumulated to purchase an entire place with their own money. Other people might decide to invest in REITs.

According to Sachin Jhangiani, ex investment banker, Elevate.Money co-founder, "there are more options than before to penetrate the market with advent of wealth tech firms with flexible buy-in arrangements."

Private REIT investments are a terrific choice for people who don't yet have the money to buy their own home, but are eager to participate in the marketplace and begin generating passive income.

Exchange-traded funds with an emphasis on real estate are an additional choice for Generation Z.

The managing director at Aces Advisors Wealth Management, Andre Jean-Pierre stated that ETFs focused on real estate have enabled younger folks to invest and manage their liquidity.

Also, the younger generation can use crowdfunding to invest in real estate, whose entry has very little hindrance.

Robert Shemin, a real estate investment professional stated that there is currently residential and commercial crowdfunding that allows you to invest as little as $50 or $100.

Even though this method allows you to invest in real estate with a very little amount, Shemin advised that it is crucial to fully understand the deals, their purpose, and the laws attached to them.

What should Gen Z consider in any investment property?

For Gen Z folks that want to invest in real estate through conventional means, several elements should be considered if the investment is a good one.

Mills from Reverse Mortgage Funding stated that young investors should ask the following questions before investing in any property.

What development will come to the location in the next 30 years?

How has the value of real estate changed in the neighborhood over time?

What is the purpose of this property?

How do I make a profit through this property?

What is the difference between the interest rate and the expected appreciation rate of the loan?

Mills stated that a futuristic view of the expected growth of the neighborhood should be taken over the period of investment and investments that can lower the value of the property should be monitored. Search for consistent development and study any new trends that raise an eyebrow.

Consider the best ways to use the property and its futuristic benefit of this. Put different scenarios into consideration, such as purchasing and selling the property without a third party, leasing or renting it, selling after a short while, or buying for a long-term investment. Consider the benefits the liquid equity might be in line with your future goals and retirement lifestyle objectives.

Why the Gen Z should consider real estate investment?

Professionals indicated that Gen Z folks who decided to invest in real estate are doing the right thing. Jhangiani from Elevate Money indicated that real estate is a seasoned method of building generational wealth. Also, real estate investment is another way of helping young individuals retire early. Clear indications of this are visible as younger generations are advised to diversify their portfolio soon and offset the lack of investment from their parents and grannies.

As a rule of thumb, the value of real estate tends to increase with time, therefore, there is every tendency that investors will eventually enjoy the benefit of investing early.

The CEO and founder of Connect Invest, a platform that offers different real estate investment possibilities, Todd Parrott stated that real estate investment is considerably stable with every year returns, and is usually regarded as an investment that creates a hedge over inflation.