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Americans Choose Real Estate As the Best Investment

Sammamish Mortgage
Published:
June 3, 2021
Last updated:
June 3, 2021
In This Article

Real estate has long been a sound way to invest your money, allowing it to grow over time as the asset appreciates in value. And these days, it looks like Americans are increasingly turning to real estate as a source of investing. 

According to a recent Gallup poll, real estate maintained its position as the preferred long-term investment among Americans for the 8th year in a row. More specifically, 41% of the people surveyed said that real estate was their preference when it comes to investing. That’s the highest rating in the history of the survey. 

Compare that number to other investment vehicles included in the survey, such as the following: 

  • Stocks/mutual funds – 26%
  • Gold – 18%
  • Savings accounts/CDs – 9%
  • Bonds – 3%

Real estate has been steadily gaining ground over the past 11 years. And it’s easy to see why.

Appreciation in Value

Real estate investors make money in a few ways, one of which is through appreciation. Over time, real estate tends to increase in value. Without having to do much besides pay the mortgage, all you need to do is allow the property to sit there and appreciate in value, allowing you to grow equity in the property over time. And when it comes time to sell, you can realize a hefty profit. 

Cash Flow

A rental property that collects rent every month can provide you with a steady stream of cash flow every month. As long as you’ve crunched the numbers and generate a positive cash flow after all expenses have been accounted for, you can earn yourself a decent stream of income. 

Tax Breaks 

There are certain tax breaks that come with owning real estate. As a real estate investor, you can benefit from several tax deductions that can help save you money when you file your taxes. Generally speaking, you can deduct certain costs of owning, operating, and managing a piece of real estate. 

Hedge Against Inflation 

Owning real estate can help you hedge against inflation. The demand for real estate can fuel higher rents as the economy expands. In turn, this can translate into higher capital values. 

As such, real estate can help you maintain your buying power by allowing your tenants to assume some of the inflationary burden through rent payments.

Leverage

With as little as a 5% down payment, you can own an asset of great value. The leverage available in the form of a mortgage makes owning a valuable asset like real estate attainable for the average investor.  

Diversify Your Investment Portfolio

It’s always a good idea to avoid putting all your eggs in one basket when investing. Instead, you would be wise to diversify your investment portfolio to help maximize your returns while minimizing your risk. And real estate should certainly be a part of your diversified investment portfolio.

Let’s connect if you’re ready to make real estate your best investment this year. 

America Choose Real Estate As Best Investment

Today’s Mortgage Rates Jun, 15, Tue, 2021

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