- Real estate has outranked stocks, savings accounts, and gold as the best long-term investment among Americans for the past 7 years so lot of Americans are considering to buy a home.
- The belief in the stability of housing as a long-term investment remains strong, despite the many challenges our economy faces today.
- Of the four listed, real estate is also the only investment you can also live in. Buy a home that’s a big win!
Americans Still Believe Real Estate is Best Long-Term Investment | buy a home
According to Bankrate’s latest Financial Security Index Poll, Americans who have money to set aside for the next 10 years would rather invest in real estate than any other type of investment.
Bankrate asked Americans to answer the following question:
“What is the best way to invest money you wouldn’t need for 10 years or more?”
Real Estate (buy a home) came in as the top choice with 28% of all respondents (3% higher than last year), while cash investments – such as savings accounts and CD’s – came in second with 23% (the same as last year). The chart below shows the full results why buy a home is the best choice:
The article points out several reasons for these results:
“After bottoming out at the end of 2011 following the worst housing collapse in generations, home prices have gone gangbusters recently, climbing back above their record pre-crisis levels. Prices jumped 6.6 percent during the 12 months that ended in May, according to CoreLogic. Buy A Home
Toss in persistently low interest rates, tax goodies that come with owning a mortgage, and the psychological payoff from planting your roots, and maybe it’s no wonder real estate remains popular.”
The article also revealed that: buy a home
“Bankrate’s Financial Security Index — based on survey questions about how people feel about their debt, savings, net worth, job security and overall financial situation — has hit its third-highest level since the poll’s inception in December 2010.” buy a home
Homeownership Is a Good Financial Investment!
According to a recent report by Trulia, “buy a home is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buy a home instead of signing another lease extension, but does that make sense from a financial perspective?
Ralph McLaughlin, Trulia’s Chief Economist explains:
“Buy a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.”
The article listed five reasons why buy a home makes financial sense:
- Mortgage payments can be fixed while rents go up.
- Equity in your home can be a financial resource later.
- You can build wealth without paying capital gains.
- A mortgage can act as a forced savings account.
- Overall, homeowners can enjoy greater wealth growth than renters.
Is this a good time to sell or buy a home?
Social distancing. Self-quarantine. Hand sanitizer, soap and water and elbow-bumping instead of shaking hands.
In our efforts to deal with a world-wide pandemic, not only are our priorities changing, but our vocabulary as well.
There was no warning, really, so it naturally caught many of us by surprise. We’re getting a lot of questions from our clients, worried about whether or not they should continue to close on their transactions, continue searching for a home or for a buyer for their current home.
We aren’t medical experts, so we can’t field medical questions. But we are real estate experts and are happy to offer our opinion of what is happening in the housing market and what experts expect in the coming weeks and months.
While there are plenty of rumors and much guessing from the experts as to how the U.S. economy will be impacted by the safety measures federal, state and municipal governments are enacting, nobody is certain.
We agree with those who claim that it all centers on how long the virus takes to get under control. The longer Americans are out of work, the longer retailers and other businesses remain closed, the bigger the impact on the economy.
Yes, President Trump is working on a stimulus package for both individual taxpayers and businesses. Hopefully, it can be pushed through Congress soon.
Will our deal close?
If you have already signed a purchase agreement, as a buyer or a seller, lenders are taking extra steps to help speed up the process.
The Department of Veterans Affairs, for instance, is allowing VA buyers and sellers to participate in meetings with title companies, appraisers, lenders and VA personnel via phone or “other electronic methods,” according to the experts at Military.com.
Newly constructed home sales are still quite strong and closings are running smoothly. “During the first two weeks of March, new orders were up 16%, closings continued on schedule and traffic in home sales centers was strong,” Stuart Miller, Lennar Corporation executive chairman told the South Florida Business Journal.
The real sticking point to be aware of is that with municipal buildings closing down, the sale may not be recorded when you expected it to. Some municipalities are offering alternatives, such as closing remotely, through e-recording (thank goodness for technology!) and even by mail.
Is this an ok time to buy a home?
Within the real estate industry there’s a well-known saying that the best time to buy a home is when you can afford to buy a home.