With all the headlines circulating about home pricesĀ and mortgage rates, you may be asking yourself if it still makes sense to buy a home right now, or if itās better to keep renting. Hereās some information that could help put your mind at ease by showing that investing in a home is still a powerful decision.
According to the experts at Gallup, real estate has been crowned the top long-term investment for a whopping 12 years in a row. It has consistently beat out other investment types like gold, stocks, and bonds. Just take a look at the graph below ā it speaks volumes:
But why does real estate continue to reign supreme as a top-notch long-term investment? Itās because, even today, buying a home can be your golden ticket to building wealth over time.
Unlike other investments that can feel a bit like riding a rollercoaster with all the ups and downs and ongoing risk factors, real estate follows a more predictable and positive pattern.
History shows home values usually rise. And while prices may vary by market, that means as time goes by, your house is likely to appreciate in value. And that helps you grow your net worth in a big way. As an article from Realtor.com explains:
āHomeownership has long been tied to building wealthāand for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.ā
So, if youāre on the fence about whether to rent or buy, remember that real estate was consistently voted the best long-term investment for a reason. And if you want to get in on that action, it may make sense to go ahead and buy (if youāre ready and able).
When aiming to establish lasting financial security, real estate investment plays a vital role in a comprehensive financial plan. Through strategic property investments, you can capitalize on potential value appreciation, rental earnings, tax benefits, and portfolio diversification.
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