With all the headlines about house prices and rising mortgage rates, you might be wondering if it still makes sense to invest in home ownership right now. A recent Gallup poll shows the answer is yes. In fact, real estate has been voted the best long-term investment for the 11th consecutive year, consistently outperforming other asset classes such as gold, stocks and bonds (see chart below):
If you’re thinking about buying a home, let this survey put your mind at ease. Even though everything is happening today, Americans are aware that owning a home is an important financial decision.
Why are Americans still so positive about the value of a home investment?
Buying real estate in America is typically a solid long-term wealth-building strategy. As Lawrence Yun, chief economist for the National Association of Realtors (NAR), notes:
“. . . Home ownership is a catalyst for wealth creation for people from all walks of life. A monthly mortgage payment is often viewed as a mandatory savings account that helps homeowners build net worth about 40 times that of a renter.”
This is because owning a home increases your net worth over time as the value of your home increases and you pay off your mortgage. And since building that wealth takes time, it can make sense to start building it as soon as possible. If you wait to buy and keep renting, you’ll miss out on the monthly payments for the apartment you’re investing in.
Buying a home is an important decision. No wonder, then, that real estate is the best long-term investment for many people. If you’re ready to begin your own home ownership journey, contact a local real estate consultant today.