Real Estate Is Still Considered the Best Long-Term Investment
You might be wondering if it still makes sense to invest in homeownership at this time in light of all the news reports regarding rising home prices and mortgage rates. The result of a recent Gallup poll is "yes." In fact, for the eleventh year running, real estate has been chosen the best long-term investment, regularly outperforming other asset classes including gold, stocks, and bonds (see graph below):
This survey should reassure you if you're considering buying a house. Americans understand that purchasing a home is a significant financial choice, despite everything that is occurring now.
Why Do Americans Still Think Buying a Home Is a Good Investment?
In America, investing in real estate has traditionally considered a wise long-term plan for accumulating wealth. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
This is due to the fact that when your home appreciates in value and your mortgage balance decreases over time, having a home increases your net worth. And since accumulating that wealth takes time, getting started as soon as you can would make sense. You will lose out on those monthly housing payments going toward your home equity if you delay to buy and continue renting.
To sum up
Purchasing a home is a significant choice. Therefore, it makes sense that so many people consider real estate to be the ideal long-term investment. Let's talk right away if you're prepared to embark on your own path to homeownership.