(KFDX/KJTL) — When it comes to investing money, where are you putting your hard-earned cash? A new survey says real estate tops the list of long-term investments.
Mary moloney talked to experts who shared their top reasons for investing in property.
“I want you to deal with your problems by becoming rich!” cheers! (The Wolf of Wall Street)
Hollywood has glamorized making fast money on stocks, but they’re no longer America’s favorite long-term investment. A new bank-rate survey finds real estate is king. And real estate experts are not surprised.
David Greene, real estate expert, and bigger pockets podcast co-host says “it’s not sexy like some of these cryptocurrencies might be or when the stock market has a big run. But that’s also why I love it. It is much more predictable than other asset classes and you make money in several different ways.”
Stocks ranked a distant second in the survey. Cash investments like a savings account finished third, followed by gold and precious metals. Bitcoin and cryptocurrencies ranked the lowest.
If you’re thinking about investing in property, experts say to take advantage of historically low-interest rates and buy a rental property, and get tenants to pay off your mortgage.
“The easiest way that you can ever become a millionaire is take out a million-dollars in real estate debt and let someone else pay it off for you,” says Greene.
Experts also say real estate is a hedge against inflation. As the house goes up in value, rents also climb, but your mortgage payment stays the same.
“That creates a difference between how much you’re paying versus how much you’re earning, and the bigger the difference that you get, the more money that you’re able to make,” says Greene.
According to the bankrate survey, millennials are the most drawn to real estate as a long-term investment compared to any other generation.