Real estate has proven to be one of the most profitable and least risky long-term investments.
Since 1942, there have been 73 years of property value increases versus only 7 of value decreases – an absolutely unbelievable statistic!
Here’s the chart that shows the specifics (courtesy S&P/Case Shiller):
This just goes to show you that real estate is one fantastic investment.
Paying It Down AND Appreciation
Homeowners, unlike renters, benefit from the capital appreciation in their property. Not only are property owners paying down the amount that they owe on their mortgage each month, they are also realizing an increase in the value of their homes nearly every year.
That’s why real estate has been featured as one of the best performing asset classes ever.
The steady growth in the price of property all across the United States means that people benefit from the wealth effect created by an ever-increasing property market.
Supply and Demand
Presently, the United States is suffering from a shortage of housing in many states across the country. That will only increase the value of real estate – and you can find more about that here…
Secondly, real estate is an incredible hedge against inflation. As the cost for goods and services increases, so does real estate, often far faster than the rate of inflation.
An All-Around Winner
Investing in real estate is a prudent long-term investment strategy, no matter where you live. Studies show that real estate is one of the top-performing asset classes across all categories, outperforming other hard assets like precious metals in returns.
Please do reach out to me for more, as it would be my pleasure to help you with your long term investment strategy!
