America’s Thoughts on the Best Long Term Investment
We all want to be frugal with our money, therefore we must be wise with our investments. There are countless entities that we can invest in such as stocks/mutual funds, gold, savings accounts/CDs, and bonds. Despite the appeal of these long term investments, the Gallup organization conducted a recent survey ranging from all age groups in America with a consensus that real estate is the number one choice. With the highest percentage, the survey stated that 35% of Americans voted real estate while stocks and mutual funds placed second at 22% and the others options fell below that mark.
There are a few things to understand why real estate is paramount. First, it provides the investor with more peace of mind due to the relatively stable market. In comparison, the stock market is extremely volatile due to a variety of external factors. A recent example are the effects of Brexit where the stock market took a hit, while New York City real estate continued as is which exemplified itself as a safe haven for investments. Another attractive feature of investing in real estate is the stable income return it can provide. “Investments that rely more on income return, tend to be less volatile than those that rely more on capital value return” (Investopedia). Also if you are one with a portfolio of investments an investment in real estate can bring diversity. The relationship between real estate and other asset classes tends to be low/negative. The effects of this within your portfolio can lower volatility and create a higher return per unit of risk.
No matter where you choose to invest your money, just be careful within the competitive market. Here, we are just illuminating the potential value an individual can receive from investing in real estate. If you are unsure where to begin, do not worry. Here at Keller Williams we are here to help and educate you on these types of investments so you can make the final decision yourself.