http://finance.fortune.cnn.com/2014/04/18/real-estate-investment/?iid=HP_River
According to a Gallup poll released Thursday, a plurality of Americans now think of real estate as the "best" long-term investment, followed by gold, stocks and mutual funds, savings accounts/CDs, and bonds. For wealthy Americans, investing in stock market is the best way to become wealthy because of the high return. As to upper-income Americans, they are much more likely to say real estate and stocks are the best investment. But Americans don't refer "best" to highest return. Actually, real estate, returns very little when adjusted for inflation.The house price has appreciated little since 1987, after adjusted for inflation.
This is a good article. Real estate in my mind is not the best investment over time unless you have a passion for the subject. Some people see value in owning a tangible asset that they can see and touch instead of a number on the stock market, not necessarily a good thing. In my mind real estate is a big risk, and not necessarily the best over time. This article not only shows americans love of real estate, but also that they are scared of the stock market.
ReplyDeleteI agree with Tyler in that real estate is very risky. However, I feel as though people feel as though it is safer than the stock market because they will always get something back on their money. I personally would rather invest in real estate, but that's because I am very interested in it. So, I completely agree with Tyler's comment that its a good investment if you have a passion for it.
ReplyDeleteI think real estate is a preferred investment once you have a family, as owning a home indicates stability and it is "less risky" than stocks, as real estate is a long term investment and you don't need to keep checking its price everyday unlike stocks.
ReplyDeleteHowever stocks can be also bought for a long term.
This is an interesting article, that makes you think how long term gains and short term gains vary with their favorability.
Every form of investment has ups and downs, but I do agree with Tyler on this one. With how indecisive the market has been recently, real estate seems to be rather risky. Stocks are also risky, but real estate brings more risk because you don't know if you will be able to get out as easily as you got in. Not only do the prices fluctuate a ton, but you also have to hope that you can find a buyer for a fair price.
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ReplyDeleteAlthough risky, real estate can be a nice investment, depending on the individual. There were some people who made money on their real estate investments before the 2008 recession, if they were lucky enough to sell their homes before they lost value. In the last few years, home prices have started to balance against, as the economy has been slowly improving. However, as a very risky investment, I would not encourage people to invest in real estate, as there are better investments out there, such as the stock market.
ReplyDeleteEspecially risky. It's great that Americans are in love with real estate again. While I agree with Tyler that it can be an especially risky investment, you certainly must have a passion for it. I also agree with Matt, that there are better investment alternatives like the stock market. But if you have the right head, you can do wonders in this industry. Central Ohio is one of the fastest growing regions in the country and there is much to be done in the real estate sector here. It'll be interesting to see what happens over the next few years with the property market.
ReplyDeleteThis is something that I would love to be part of in the future. The real estate market is an important part of this country. I believe investment properties are good as long as you can make money off of them. Everyone needs a place to live, so rental properties can make a good investment. A giant cornfield in the middle of South Dakota may not exactly be the best investment property. There is always a way to make money in real estate. One must be smart about the deals they make.
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