Real Estate Investments Still Preferred Over Stocks

For the fifth year in a row, Americans believe that real estate is a better investment for growing wealth than any other long-term investment, including stocks and bonds. Here is what the poll found and what I feel are the reasons Americans choose real estate again and again.

April Gallup Poll

An April Gallup poll shows that just over 33% of those polled feel that real estate is the best long term investment over any other. The rest of the numbers look like this:

  • Stocks 25%
  • Gold 17%
  • Savings Accounts and CDs 15%
  • Bonds 6%

This is not a big change since 2015, but is a very big change from 2011 when gold was in the highest spot. Americans were concerned with housing because of the real estate bubble, so they turned to gold. But with the stock market back on track, the real estate market improvement, and gold prices going lower, Americans are looking to real estate once again.

Why Americans Are Choosing Real Estate?

According to Gallup, Americans choose real estate over stocks because they understand real estate better. In fact, more people own a home than stocks and enjoy holding onto something tangible. They have also seen the real estate market climb back after the bubble burst to record highs across the country, helping them believe that real estate always bounces back.

Although both of these factors contribute to why real estate is such a good investment, here are a few more reasons you should consider investing in real estate for your own wealth building machine.

Why I Recommend Real Estate Investing

I’m surprised that the number who feel real estate is the best long term investment is as low as it is given the great reasons to consider investing right now.

  1. Low Interest Rates – Even though interest rates have gone slightly over the past year, they are still at historic lows. When you have low interest rates, you are better poised for a higher return on investment.
  2. Good Deals Exist – With home prices bouncing back, the amazing deals of ten years ago are a bit tougher to find. However, there are still many large pockets in the US that have not bounced back but are poised to do so over the next few years.
  3. Ease of Entry – In order to begin real estate investing, you don’t need a lot of experience or cash.
  4. Properties Appreciate – One truth you will learn is that property values almost always grow over time. This is especially true if you can hold onto a property when the market is depressed.
  5. Positive Cash Flow – Real estate is an investment that provides a positive cash flow through rental income. This cash flow increases as loans for the purchase of the property are paid in full.
  6. Hedge Against Inflation – Investing in property protects you against inflation because property values are not dependent on the value of the dollar. As inflation rises, home values rise as well.
  7. Control – For those that wish to control what they buy rather than give the control to a manager, property can be the perfect vehicle. You get to determine what you want to buy and how you want to buy it.

If you want appreciation, control, dependable returns, and more, then real estate investing is something you should consider. Contact REKI today to determine how we can help you get started with your real estate investing business.