OwnAmerica recently conducted another survey, this one regarding
what the public insists is the true best long-term investment
strategy. If one had to invest their capital, what direction would
they choose in todays economic climate; would it be to invest in
bonds or savings accounts, stocks or mutual funds, or perhaps real
estate? It comes to be known, as reported from Business Wire in
late February of 2012, that respondents as a whole declared real
estate was far and away the best long-term investment route to
take.
With all of the recent scrutiny about home values decreasing
across the board, granted some areas far more than others, it is
surprising that real estate has garnered so much trust from this
poll. Overall, 84% of people voted real estate as the best
long-term investment, while bonds came in at 4%, savings accounts
at 2%, and stocks and mutual funds in second place at 9.9%. These
are very strong numbers and shows that the public is clearly
educated by understanding the recent news about just how much the
real estate market (especially in Massachusetts) is improving.
Of these 84% who responded with real estate, 81.6% of them
shared that they have made money on their real estate investments.
In addition, 53.5% of them believe property values will ascend over
the next five years whereas 82% absolutely feel that home values
will rise in the next ten year period. The crucial point to take
from all of this is that once again, the people of this nation are
cognisant about what it takes to turn a profit. No longer today are
we spoiled by the housing boom. We must all be patient and know
that like in any financial market, the real estate market also runs
in cycles and is due for another strong push as we move
forward.
It was also pointed out that with the (generally across the
country) lowering of home values paired with the rising rents,
there has been a resulting scenario where the rents exceed the cost
endured for full ownership of that property. There is a strong
argument in real estate that people should purchase a property,
earn the double digit returns from renting it and then slowly but
surely see the value of the home increase as well in the next ten
years. Profits are out there to be had. All indications from recent
comparative numbers from recent years are pointing to the official
rebounding of the real estate market, and evidently, this is having
a positive impact on public opinion as well.
More Information: MarketWatch