Gallup: Real Estate is Best Long-Term Investment 4 Years Running

 

Gallup: Real Estate is Best Long-Term Investment 4 Years Running | Keeping Current Matters

Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the fourth year in a row, Real Estate has come out on top as the best long-term investment! This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26%. The full results are shown in the chart below.

Gallup: Real Estate is Best Long-Term Investment 4 Years Running | Keeping Current Matters

The study makes it a point to draw attention to the contrast of the sentiment over the last four years compared to that of 2011-2012, when gold took the top slot with 34% of the votes. Real estate and stocks took second and third place, respectively, while still in recovery from the Great Recession.

Bottom Line

As the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

 

Investors: More Sales and Higher Prices

The National Association of Realtors recently released their 2016 Investment and Vacation Home Buyers Survey. The survey revealed many characteristics of both vacation home purchasers and investors. Two weeks ago, we posted on the vacation home market. Today, we want to concentrate on the investor real estate market.

The survey revealed that investment-home sales in 2015 jumped 7.0 percent to an estimated 1.09 million from 1.02 million in 2014.

Investors: More Sales and Higher Prices | Simplifying The Market

Lawrence Yun, NAR’s chief economist discussed the increase in the number of sales:

“Despite a smaller share of distressed properties coming onto the market, investment purchases reversed course in 2015 after declining for four straight years. Steadily increasing home prices and strong rental demand appear to be giving more individual investors assurance that purchasing real estate will diversify their portfolios and generate additional income if they decide to rent out the home.”  

Prices Are Also Up

The price paid by investors also increased in 2015 by 15.3%.

Investors: More Sales and Higher Prices | Simplifying The Market

Tomorrow, we will be providing an infographic that will highlight the other findings about investors from the survey.

Investment Home Sales Rebound in 2015 [INFOGRAPHIC]

Investment-Homes-STM

Some Highlights:

  • 2015 marks the first year-over-year increase in investment home sales since 2011.
  • 62% of all investment homes purchased were single family homes.
  • The South saw the highest percentage of investment home sales (39%) with the West coming in second (28%).

How To Create Real Family Wealth [INFOGRAPHIC]

How To Create Real Family Wealth | Keeping Current Matters

Some Highlights:

  • Buying a home is often the biggest financial decision that any family will make.
  • The average net worth of a homeowner is 45x greater than that of a renter.
  • Homeownership puts your housing costs to work for you.
  • Infographic was created in cooperation with Jensen & Co.

Real Estate Shines as an Investment in 2015

Real Estate Shines as an Investment in 2015 | Keeping Current Matters

A survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is buying a home they consider the financial benefits of homeownership along with the social benefits. The survey mentions things like:

  • Paying rent does not make sense
  • Homeownership provides a good financial opportunity
  • Owning a home helps you building family wealth
  • Buying a home is investing in your retirement
  • Home equity gives you something to borrow against

So how did homeownership match up against other investments in 2015? Here is a chart that compares its return on investment against precious metals and the stock market last year:

2015 Return on Investment | Keeping Current Matters

Bottom Line

Not only did homeownership offer all its social benefits. It also was a great investment financially.

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