Do you have money in the stock market? Great! But, if you’re looking for a way to diversify, real estate investments can be a good option! Many of today’s Millennial population are opting for renting over buying a home, but if you’re forward thinking, this may be a little short-sighted. According to a recent Gallup poll, there are some important factors to consider about why real estate is a great investment. In this article, we examine why you should consider all your options when it comes to buying a home or making a real estate investment.
According to the Gallup pole, “Stocks have had a strong 2019, with the major U.S. stock indices establishing or nearing record highs in April and early May. Still, more Americans continue to believe real estate (35%) is a superior long-term investment to stocks (27%) or other investment options.”
Investments in real estate are dual-purpose
One reason real estate investments continue to be part of many portfolios is that it serves as an investment and a place to call home. Aside from some of the pros listed below, real estate values continue to climb and provide many homeowners with tax advantages too! So, different than stocks, investments in real estate provide dual purposes and therefore, a win/win advantage.
Diversification is Important
Real estate investments are a great way to diversify your portfolio and mitigate risk. Typically, real estate investments are non-correlated to the stock market, providing a great alternative for folks who want to diversify a portion of their portfolio. Real estate investments also typically provide reliable returns without as much volatility.
- Real estate has outranked stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans for the last 6 years.
- Stock owners are more positive about real estate than stocks as an investment.
- Of the 4 listed, real estate is the only investment you can also live in!
According to James Harris, writer for Entrepreneur.com,“Real estate is a great investment for many reasons. You can enjoy an excellent rate of returns, amazing tax advantages and leverage real estate to build your wealth. Here are the top five reasons why real estate is a great investment.”
If you would like to explore purchasing a home or making a real estate investment, contact the experts at The Donnelly Group. We’ll put our 50+ years combined experience to work for you!