Americans Rank Real Estate as the Best Investment

Published:
July 31, 2020
Last updated:
April 14, 2022
In This Article

Real estate has come a long way over the past decade when it comes to investing. Today, more Americans favor real estate as a sound investment over other vehicles. Check out this infographic to find out why.

It’s important to build a financial nest egg. Not only can it be used for a rainy day, but it can also help pay for major expenses and provide you with something to live off of when you retire. While it’s always a good idea to save your money, it can be very difficult to put enough aside for retirement just based on what you deposit in your savings account and the small interest you are paid out.

Instead, you’d be wise to invest your money in a vehicle that will see it grow much faster. A sound investment can help you grow your wealth and provide you with enough money to retire on when you finally reach your Golden Years. And depending on what you invest your capital in, you can see your money grow steadily over the years, providing you with healthy returns and stability.

While there are many avenues you can take to invest your money, nothing compares to real estate. History shows that the value of real estate increases over time. Even though there may be dips here and there, the overall trajectory is upward when it comes to the value of real estate. And these days, investing in real estate is one of the more sound ways to park your money. Click the image below to download PDF. 

Americans Rank Real Estate as the Best Investment

Americans Prefer Investing in Real Estate

Clearly, Americans feel the same way. According to recent data, more Americans favor real estate as a vehicle investment compared to any other type of investment.

More specifically, this is how Americans rank various investments:

  1. Real Estate: 35%
  2. Stock Market: 21%
  3. Savings Account: 17%
  4. Gold: 16%

Real estate has come a long way since 2011 when 34% of Americans favored gold as the best investment, and only 19% favored real estate. Today, the numbers have virtually flipped. While gold may still be a great way to hedge against risk, real estate is a clear winner when it comes to how Americans prefer to invest their money.

Of the four investments listed, real estate is the only one you can also live in. That means your home is an actual investment in itself. And there are many ways to boost your investment if you so choose.

So, why is real estate such a great way to invest your money?

Real Estate is a High-Value Tangible Asset

Your property will always hold value. On the other hand, intangible investments like stocks can drop in value, even to zero. Instead, your home is a tangible valuable asset that can give you ways to grow your wealth and maximize your investment.

For instance, you could rent out a portion of your home to help you both pay your mortgage and add equity to your home. You could also improve the home to immediately add value and equity to your home, so if you end up selling in the near future, you can recoup a higher return.

Real Estate Increases in Value Over Time

While you can certainly make a lot of money quickly with the stock market, there is a huge amount of risk associated with this type of investing. Volatility is a regular occurrence with the stock market. One day you could be profited handsomely, and the next you could be in the red.

Such is rarely the case with real estate. While property values can decrease from time to time, they tend to follow an upward trend over time. When the market improves, the value of your home increases. As such, you build equity in your home. While there are plenty of things you cannot control with the stock market, you have much more control of your investment in real estate. Your home is a tangible asset that you can use to take advantage of several revenue streams, all while benefiting from capital appreciation.

Real Estate Investing Comes With Tax Benefits

Unlike most other types of investments, real estate allows you to take advantage of tax deductions on mortgage interest, depreciation, operating expenses, cash flow from an investment property, property taxes, and other benefits. Come tax time, you could be deducting plenty of expenses that can wind up back in your pocket.

No wonder real estate is now the more popular choice when it comes to investing for Americans!

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