Real Estate Voted Best Long-Term Investment

Real Estate Voted as Better Investment Than Stocks, Gold and Savings for 8th Consecutive Year

Nationally, real estate tops the list as the best long-term investment for the eighth year straight. (Source: Gallup) Real estate continues to gain traction as the best long-term investment in the country, check out the graph below.

If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, combined with rising mortgage rates, real estate sales prices continue to climb. Homeowner’s are building incredible amounts of equity as home prices appreciate.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.” 

– James Royal, Senior Wealth Management Reporter at Bankrate (Source)

If you’re a renter, you don’t have that same benefit. You aren’t protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation.

“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”

– Natalie Campisi, Advisor Staff for Forbes (Source)

In conclusion, housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

Jonathan Klotz, Realtor | (408)504-2484 | jklotz@intero.com | YouTube | LinkedIn | Facebook