Why 89% of Investors Want to Invest in Real Estate
In the ’80s, when you talked about investment, the stock market was the name of the game. Other popular investments over the years have included bonds, CDs, business equity, and others. Today, however, more and more investors are choosing real estate. In fact, according to the latest surveys, 89% of all investors are targeting real estate as their asset class of choice. So why has real estate risen in the ranks of investment assets?
96% of Investors Have Had Success in Real Estate Investing
First, 96% of all of the investors surveyed in the US who had experience with real estate investments reported that investing in real estate helped them improve their financial status. Of those 96%, over half said that their long-term net worth and overall financial stability improved. 45% reported that they had increased monthly cash flow, as well.
With such impressive numbers, it’s no wonder that 94% of investors who’d previously invested in real estate reported that they would like to make more real estate investments, and 84% reported that they have plans to invest in real estate in the future. So, what’s driving this new interest in a very old asset class?
Reality TV Has Surprisingly Little Effect on Investors
Some might say that the recent rise in the number of reality TV shows about house flipping might have something to do with real estate investment’s increase in popularity. However, most survey respondents have said that these TV shows have had little to no effect on them. In fact, most of them are not focused on property flipping at all, and only 29% considered house flipping a viable real estate investment for their purposes.
Family Is a Big Driving Factor
So, what’s actually driving investors’ motivation to turn to real estate? The majority of investors reported that they considered family first when investing in real estate. For example, 83% of investors with children said that they would consider investing in real estate with or for their kids. 79% of them also said that real estate investing was attractive because they felt it was important to invest in properties that they or their family members could use in the future at some point.
Investing in Local Economies
One of the things that drives a lot of investors to real estate is the opportunity to invest in their local economies and communities. By improving rundown properties, creating rental properties for tenants, and/or funding development of new properties, they are paving the way for individuals and businesses in their communities. By investing in real estate, many investors feel like their investing in their own hometowns, which makes these investments much more personal and satisfying than almost any other type of investment on the market today.
So, what do you think? Will you be one of the 89% of investors looking to real estate as your next investment in the coming months and years?
