Real estate investment remains to be a great way to build wealth.
Is real estate still considered the best long-term investment? With all the headlines circulating about home prices and rising mortgage rates, you may wonder if it still makes sense to invest in homeownership right now. A recent poll from Gallup shows the answer is yes.
In fact, real estate was voted the best long-term investment for the 11th consecutive year, consistently beating other investment types like gold, stocks, and bonds. If you’re thinking about purchasing a home, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.
“Owning a home grows your net worth over time.”
Purchasing real estate has typically been a solid, long-term strategy for building wealth in America. As Lawrence Yun, chief economist at the National Association of Realtors, notes, homeownership is a catalyst for building wealth for people of 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.
That’s because owning a home grows your net worth over time, as your home appreciates in value and as you pay down your mortgage. And since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on all those monthly housing payments going toward building your home equity.
The bottom line is this: buying a home is a powerful decision, so it’s no wonder so many people still do it. It’s no wonder so many people view real estate as the best long-term investment. If you’re ready to start on your journey towards homeownership, contact us today. We would love to help.
