What are Americans investing their money in now?
There are plenty of investment choices today. There is an endless menu of cryptocurrencies, bonds, online bank savings accounts, publicly traded stocks, and tech startups. So, which is the top investment pick today?
According to a Bankrate survey, when it comes to investing money for the longer term (10 years or more), real estate is again the top pick among Americans.
Real estate won by a long lead over other types of investments — the highest rating for real estate in seven years.
We are all savvier now. Regardless of age group individuals and families see the bigger picture now. We’ve seen and experienced the manipulation and volatility of other asset classes and the economy. Even though we all know real estate values can fluctuate over time too, there is a big appreciation for the value of brick and mortar, tangible investments, with a lot of downside protection, and passive income opportunities.
The Runners Up
Real estate was a favorite by over 30% more than stocks. Then at just 1% less than stock market investing were cash investments, such as CDs and savings accounts.
Then we see gold and precious metals, bonds, and bitcoin or other digital currencies as favored investments for long term investing. Precious metals were only a third as popular as real estate.
Everyone Is Into Real Estate
What may be even more interesting about this data is that real estate has become the favored investment across all age groups and income levels.
Millennials actually ranked real estate as their preferred investment more than anyone else. They are followed by Gen X, baby boomers, and the silent generation.
All income groups from under $30,000 per year to over $75,000 per year voted for real estate as their favorite investment.
Buying Homes Versus Investing In Real Estate
It’s important to note that investing is not the same as buying a home. We especially see this with millennials. They are big believers in real estate as an investment, though haven’t taken to buying homes for themselves to live in as some proclaimed they would. Older Americans may also be moving to more rental housing and ALFs rather than owning in their last years. This all continues to make rentals a great investment. This is especially true of multifamily apartments which combine more affordability, value, and community connectedness.
What are you investing in?
ABOUT THE AUTHOR
Bill Zahller is the President of Park Capital Properties and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Properties in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalProperties.com for more information.