"Millennials also want control and liquidity of their cash, so investing for only a 12-month term with returns of between 7-12% is highly attractive to them."
The firm has seen investing in bridge loans up 100% over the last 12 months, with millennials now accounting for 27% of all bridging borrowers.
Vivek Jeswani, chief investment officer of Bridge Invest, commented: “We are seeing a sharp increase in the numbers of millennials investing in bridging finance through our firm, as they view lending money on a property is a better option of amassing their savings than buying in the current market. Millennials have lived through the property crash of 2007/2008 so are weary of negative equity.
“Many of their older counterparts, who favour traditional assets such as bricks and mortar, are seeing buy-to-let yields plummet resulting in a short-fall at retirement. On the other hand, millennial investors have an unconventional approach to finances and savings; by investing in alternatives with double figure returns they achieve additional disposable income. Millennials like the passive income as they do not have the time to deal with tenants, or property repairs.
“Traditional savings and ISAs are offering very low rates of return and many alternative investments do not offer the security benefits of short-term property loans. Millennials also want control and liquidity of their cash, so investing for only a 12-month term with returns of between 7-12% is highly attractive to them. Such lending gives millennials an opportunity to benefit from the positive equity being accumulated by businesses and alike in the sector, without being directly exposed to potential corrections in property prices."
