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