R
eal estate has become a significant source of wealth for many older individuals in top-tier Asian cities like Singapore and Hong Kong, where rising property values have led to substantial affluence. However, this trend is unlikely to be replicated among younger generations, including millennials and Gen Z, who are burdened by ultra-high property prices and long-term mortgages with high interest rates. As a result, they struggle to build wealth through real estate, unlike their parents.
In Hong Kong, for instance, owning a fully paid-up one-bedroom apartment can already make someone a millionaire. Yet, younger generations face significant financial challenges due to the unaffordability of property prices. Many are forced to take on long-term mortgages with high interest rates, making it difficult for them to ascend the social ladder.
The Mastercard Survey found that 40% of respondents plan to use cryptocurrency in the next year, highlighting a growing interest in alternative investments among younger generations. Some experts advocate for bitcoin as a viable option, viewing it as "virtual real estate" with a capped supply and high liquidity. This makes it an attractive investment opportunity for those who cannot afford traditional property ownership.
As wealth is often transferred from one generation to the next, bitcoin may play a crucial role in this process. Younger people are more open to cryptocurrency investments due to their tech-savviness, suggesting that bitcoin could be a key factor in transferring wealth from older generations to younger ones.
Instead of pursuing expensive real estate, younger investors might consider allocating funds to bitcoin as a new frontier for wealth accumulation. However, it's essential to approach this investment with a long-term mindset, holding onto bitcoin like one would residential property, rather than engaging in speculative trading. This responsible approach is crucial for building enduring wealth in an increasingly challenging financial landscape.
