Yahoo Finance Americans Favor Real Estate As Top Long-Term Investment
According to a recent study by global analytics and advisory firm Gallup, approximately 36% of Americans surveyed believe that real estate is the best long-term investment they can make.
They rank it above stocks or mutual funds (22%), gold (18%) and savings accounts or certificates of deposit (13%). Just 4% of adults surveyed said bonds are a good investment, and 3% believe cryptocurrency is a smart choice.
"No one gets super emotional about stocks," says Francis Financial President and CEO Stacy Francis. "But individuals definitely get emotional about real estate."
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Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.
Real estate offers the potential for long-term appreciation and relatively stable returns. It often serves as a hedge against inflation as property values and rental income tend to rise with the cost of living.
While purchasing real estate traditionally has been reserved for institutional investors or high-net-worth individuals, crowdfunding platforms have opened the door to investors who don't have the money for a down payment on their own rental property. Some platforms allow investors to get started with as little as $10.
Arrived Homes, for example, allows investors to purchase shares of individual rental properties for as little as $100, while the minimum investment on Fundrise is just $10.
Real estate investment trusts (REITs) are another option. A REIT is a publicly traded company that owns, operates or finances income-producing real estate. They provide investors with a way to earn a share of the income produced through commercial real estate ownership without buying, managing, or financing any properties themselves.
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Researching the REIT you're interested in investing in is critical. While REITs offer a great opportunity to diversify your portfolio with shopping malls, warehouses, or office buildings, you’ll feel the impact if you invest in a declining sector or region.
"If there's a REIT and it's investing in shopping malls across the country, and shopping malls are not doing well ... you're going to feel that," Francis said. "You're not going to be protected."
In addition to not having to fork over a significant amount of cash, investing in real estate through a crowdfunding platform or a REIT eliminates the time and headaches that accompany being a landlord.
"It's not easy being a landlord," says American Private Wealth President Kashif Ahmed. "There's far more to it than just getting a monthly check."
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