Investing in real estate is the preferred option for Americans, a Bankrate.com poll has found
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Investing in real estate is the preferred option for Americans, a Bankrate.com poll has found.
When asked what is the best way to invest money that’s not needed for 10 years, 28% said real estate, beating cash investments (23%), the stock market (17%) and gold/other precious metals (15%).
Bankrate.com has conducted the survey 5 times with real estate coming out on top 3 times; the past 3 years.
The poll found that the rebound for real estate following the financial crisis and housing crash, has led to more people opting for the relative stability of real estate investments compared to the volatility of the stock markets.
The perception may not be the reality though, the study says, citing a UK academic report which revealed returns of only 1.3% after inflation for housing investments between 1900 to 2011.
The data also shows that younger investors, who would perhaps be more likely to take some risks with investments, are also preferring real estate over most other investments with a 30/30 split between real estate and cash.
“Contrary to the notion that millennials don’t want to buy homes, their preference for real estate as a long-term investment is exceeded only by their counterparts in Gen X,” says Greg McBride, CFA, Bankrate chief financial analyst.
When asked what is the best way to invest money that’s not needed for 10 years, 28% said real estate, beating cash investments (23%), the stock market (17%) and gold/other precious metals (15%).
Bankrate.com has conducted the survey 5 times with real estate coming out on top 3 times; the past 3 years.
The poll found that the rebound for real estate following the financial crisis and housing crash, has led to more people opting for the relative stability of real estate investments compared to the volatility of the stock markets.
The perception may not be the reality though, the study says, citing a UK academic report which revealed returns of only 1.3% after inflation for housing investments between 1900 to 2011.
The data also shows that younger investors, who would perhaps be more likely to take some risks with investments, are also preferring real estate over most other investments with a 30/30 split between real estate and cash.
“Contrary to the notion that millennials don’t want to buy homes, their preference for real estate as a long-term investment is exceeded only by their counterparts in Gen X,” says Greg McBride, CFA, Bankrate chief financial analyst.
