Few year ago homeowners were squandering to raise their equity and many of their properties where underwater until recently. It is now sellers market in many metro areas around nation and people starting to feel good about owning a home again. The cycle has turned to brighter side and no one knows how long it’s going to be this way. With this positive note, let me share the info about the topic. Americans have voted Real Estate again as the best investment for long term ahead of owning stocks bonds and gold.
Here is more about the story,
- Gold was the most popular long-term investment among Americans in 2011 — a time when gold was at its highest market price and real estate and stock values were lower than they are today. Gold prices dropped significantly after that and it lost favor with Americans. The 24% of Americans who currently name gold as the best long-term investment ties with the 24% who choose stocks.
- Bonds have been Americans’ least favored investment option for as long as Gallup has been asking the question. Savings accounts and CDs, on the other hand, have been more popular in the past. In September 2008, before gold was an option and at a time when the real estate and stock markets were tanking, savings accounts were the most popular long-term investment among Americans
- This year, the housing market has been improving across the U.S., and home prices have recently been rising after a steep drop in 2007 during the subprime mortgage crisis. This current improvement in prices may be why more Americans now consider real estate the best option for long-term investments. In 2002, during the real estate boom that preceded the mortgage crisis and before gold was offered as an option in the question, half of Americans said real estate was the best investment choice.
- Stock values have also been improving in recent years, aided particularly by the bull market in 2013. The 24% of Americans who regard stocks as the best long-term investment is also higher now, up from 19% in 2012. Still, Americans are modestly more likely to say real estate is the better investment today, perhaps because of the recent volatility in the stock market.
- Lower-income Americans, those living in households with less than $30,000 in annual income, are the most likely of all income groups to say gold is the best long-term investment choice, at 31%. Upper-income Americans are the least likely to name gold, at 18%.
- Americans between 18 and 29 years old are almost evenly split, with about one-quarter each saying real estate, stocks, gold, and savings accounts are the best choices for long-term investments. However, the 23% who said savings accounts is much higher than the percentage who gave this same answer in older age groups.
- With housing prices improving across the country, Americans are regaining faith that real estate is the best choice for long-term investments. But home ownership is also associated with views of real estate as an attractive investment opportunity. This leaves groups with lower home ownership rates, like lower-income and younger Americans, still looking elsewhere for investment options.
To read more on the survey, go to gallup.com
This is a real great news. I always guide people to diversify their portfolio. Don’t always keep your eggs in one basket. Try to spread around like some good shares, bonds, real estate and gold. That will help depending on which market you are in. When stocks are down, fixed assets always considered safe and rides the wave. When that cyclic moves, you see stocks and real estate doing good. It’s always good to have a good mixture and I really like real estate to be my hard asset holder. It all depends on everyone’s comfort-ability level and risk taking aspects. But you will never go zero on real estate investment which is not true in many investments.
Keep that in mind and invest wisely!!