Why is Real Estate Continuously Voted the Best Long-Term Investment?
Based on a recent Gallup poll, real estate has been rated the best long-term investment for the last 9 years in a row. But why is real estate the clear favorite over other investments like stocks, savings accounts, bonds, etc?
Promise of appreciation.
If you're playing the long game (which most of us are), you're looking for the investment that's going to serve you the best over the long run. Real estate is pretty much guaranteed to appreciate during the time that you own it.
If you choose to invest in rental properties, all of the profit you earn through rents is passive income for you. With the exception of occasional home repairs, owning rental properties can be extremely passive, especially if you hire a great management company.
Certain tax advantages.
There are even certain tax advantages when it comes to investing in real estate thanks to deductions you can take related to the operation, management, and maintenance of the property. We recommend working with a certified tax professional when you begin investing in real estate so they can help you take advantage of as many tax advantages as possible.
The ability to leverage your investment.
Real estate is one of the only investments where you can put down a fraction of the cost and invest in it. Think about it - if you have $20,000 you can't go buy $100,000 worth of stock. Then as you continue to pay your mortgage down, you'll own more of the investment increasing your rate of return over time by paying the mortgage down and the natural appreciation real estate enjoys.
As you can see, there are several reasons why real estate is a great long-term investment. We know that there are lots of questions that come up as you get started, but the best part is that you don't have to be an expert to get started! You can hire professionals like us who can help guide you through the process.