Real Estate Voted the Best Investment

If you’re thinking about making a move this spring, Americans agree that real estate is one of the best investments you can make. Even when inflation is rising like it is today, real estate truly shines.

In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below). This is reassuring news if you’re thinking about making a move this year.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the benefits of leveraging your current investment if you want to move into the home of your dreams.

Rising inflation means prices are increasing across the board – that includes goods, services, housing costs, and more. But if you want to move and aren’t sure if now is the right time, know that doing so sooner rather than later means you can lock in your monthly housing payments on your next home, protecting you from increasing housing costs for the foreseeable future. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

This way, the bulk of your housing costs are shielded from inflation for the duration of your loan on your next home. And you can make this happen before prices, rates, and inflationary expenses climb higher.

History Shows During Inflationary Periods, Home Prices Rise Too

As an added plus, history indicates your next home will likely grow in value with time. That‘s because, as prices rise, the value of your home does, too. And that makes buying your next home a great hedge during periods of high inflation. Mark P. Cussen, Financial Writer at Investopedia, notes:

“Real estate is one of the time-honored inflation hedges. It's a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”

Clearly, housing is a strong investment, especially when inflation is high.

When you make a move and lock in your next mortgage payment, you’re shielded from housing cost increases. You’ll also benefit from rising home prices over time, which increases the value of your home (and by extension, your net worth).

“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”

- Natalie Campisi, Advisor Staff, Forbes

Bottom Line

If you’re ready, moving sooner rather than later will put you in the best position to gain from your next investment. Let’s connect if you want to better understand how moving into your dream home could be a great investment.