For the ninth year in a row, according to a Gallup survey, Americans picked real estate as their best long-term investment. Stocks and gold were their second and third investment choice, respectively.
The fact is, real estate is one of the few investments you can actually use while you own it. Your own personal home is, for most people, the biggest purchase and investment they make. And you live and play and work and relax and sleep in that investment. You can’t say that about a stock certificate or a bar of gold.
Real estate is a finite resource, and it’s something everyone needs. We all need a place to return to after a hard day at work and a place to lay our head every night. When you own that place instead of renting, you get to benefit from the equity you build as you pay down your mortgage. You also get to benefit from home price appreciation. There are many other intangible benefits from homeownership such as becoming a part of a community.
In the last couple of years, the average home has increased significantly in value, adding over $50,000 to the net worth of millions of homeowners in just the last year alone. Very few investments offer that type of return.
You may not think of owning a home as an investment, but simply as paying for a place to live. But the numbers don’t lie. Individuals who own a home have a much larger net worth than people who rent. By buying a home, you invest in yourself.
Your investment in real estate may stop with your personal residence, but for many, buying property to then rent to others is a great way to build wealth for themselves and their family. Depending on the numbers, your renters may completely cover the loan payment for your rental property. And just as with your own home, investment property benefits its owner by increasing equity with each mortgage payment and gaining value as real estate prices appreciate.
Ready to get started investing in Atlanta-area real estate, either with your own home or a rental property? Connect with Kurzner Group today and let’s get your investment started.