Where do people feel most confident investing their money?
According to a survey from Bankrate.com, the answer is real estate.
A national survey found that Americans are not as excited about the future of the stock market as expected, even though recent record highs in the S&P 500 and the Dow Jones industrial average are pointing toward positive movement. When given choices of the best outlet to invest money to use later in life, the most popular answer was real estate. Choices such as cash investments; think CDs and savings accounts, followed.
People are starting to trust the market, but there is more confidence in putting money where your house is.
A quarter of Americans favor real estate as their long-term investing option. What does this say about the industry?
Sterling White, co-founder of real estate investment firm Holdfolio says, “Houses are tangible. You can physically see and feel the product. So you know where your money is going: It’s going into that house.”
There is some mystery and distrust when it comes to stocks. “With stocks, you have no clue where your money is going.” states White.
Real estate stands alone from the volatility of the stock market; it always has. On the other hand, it’s not a liquid asset. You can’t sell anything overnight. Real estate investors have educate themselves as there are cycles that dictate the market. It also costs money to maintain real estate and you risk losing money on the investment.
Across the United States, people are feeling more and more confident about the economy. Things have been looking up for the first time in quite a while. While we may not be bullish on the stock market, it’s looking strong right now. This is a good sign. Factors like debt, savings, job security, net worth, and optimism toward the future have been continuing to improve for the 26th consecutive month, according to questions from a survey from the Bankrate Financial Security Index.