What does Real Estate Investing Community say?

Introduction:

The past few years aside, Americans still feel strongly nowadays that Real Estate is the best possible long-term investment for their hard earned money, ahead of stocks and even gold, as compared to results of a poll just released in early April.

The poll was conducted by Gallup between April 3-6 and prioritized on the U.S. economy and personal finances. In it, participants were asked to pick what they considered to be the appropriate place to put their long-term investment dollars. The choices given were Real Estate, Gold, Stocks, Mutual Funds, CDs, Savings Accounts, Bonds, and many such choices.

Back when Gallup took the same poll in 2011, respondents overwhelmingly chose gold as the most attractive place to put their long-term investment money. That isn’t hard to comprehend given that at that time gold was going for an absurdly exalted amount while the value of the Real Estate and Stock Markets were just below that of dirt. Today, however, the Real Estate, Stock Markets, and Real Estate Investing Communities have rebounded in a profound manner, thus dropping gold back to earth and out of popularity as the vehicle of choice for long-term growth. Out of popularity may not be completely accurate as gold is still considered by nearly a quarter of participants to be the appropriate place for their money, tied with Stocks interestingly, but still, nothing close to the numbers just three years before.

Classification of Americans:

Those Americans who have combined household annual incomes of less than $30,000 are the one group who still chose gold as their best long-term investments at 31%. Upper-income Americans, prefer to get their comfort and experience in the Real Estate Investing Community and Stock Markets, were the group least in favor of gold at 18%, and are much more likely to feel that the rapidly recovering Real Estate Market is once again the suitable choice for their long-term investment.

Upper-income Americans prefer to say they own their home, at 87%, followed by middle (66%) and lower-income Americans (36%). Gallup found that homeowners (33%) are less more likely than renters (24%) to say real estate is the best option for long-term investments.

Surprisingly younger poll participants between 18 and 29 were quite evenly split, with nearly 25% each believing Real Estate, Gold, Savings Accounts and Stocks were their best choice for long-term investments. Another point to ponder is that quarter who said savings accounts is in more number than those who made the same choice in older age groups.

With stocks getting decrease and the Real Estate Investing Community rebounding rapidly and prices continue to climb, it appears that Americans are once again having faith that home ownership, as well as additional Real Estate investments, are indeed their best choice for long-term investments.

Focusing on the decline of investment.

While the institutional and large-scale investor in great quantity is purchasing home over the last five years certainly helped to pad the bottom of the housing market bottom-bounce and enhance the path to recovery, the average home buyer found themselves in competition with these large-scale investors and consequently, paying higher home prices as well.

Real estate investing community, both large and small, plays an important role in helping to stabilize markets during the darkest days of the housing recession, but a decline in investor activity now isn’t necessarily a bad thing and could have real advantages for buyers. More focus should be laid on the reasons of gradual decline of investor which results in the market going slowly and returning to normal, and all the investors’ panel’s expectations should be considered so there will not be a rush for the exit by institutional investors.