A recent survey found that the top investment choice in the United States is real estate, beating out stocks and gold. Bankrate ran the survey, asking people to pick the best way to invest money they wouldn’t need for ten years. Over a quarter of the Americans surveyed picked real estate, making it the top choice for the first time in three years. Real estate investments include buying a home to live in or a commercial or residential space to rent. Cash investments came in second for favored investment options, with millennials being the largest generation to choose cash investments.
With a strong economy and stock market, why didn’t Americans pick stocks as their top investment choice? According to Bankrate’s article, job security might not be as confident as it has been in the past. Sterling White, co-founder of a real estate investment firm called Holdfolio, gave his opinion on why real estate won.
“Houses are tangible. You can physically see and feel the product. So you know where your money is going: It’s going into that house,” White says. “With stocks, you have no clue where your money is going.”
Home values are also on the rise, showing a 4.2 percent year over year gain from March to April.
However, every investment comes with its risks and challenges. Ramnani of Francis Financial noted real estate’s downside.
“It is an illiquid asset. It’s not something you can turn around overnight. It takes a while to sell,” she says. “When you need the money, you don’t know what the real estate market is going to do.”
Even with a downside, clearly real estate can be an investment that gives many people success. At RE/MAX Paradise, we are happy to help you find the property investment best for you in Miami. We offer the best commercial and residential properties throughout the city, and are excited to help you invest in America’s top investment choice today!