The results are in: Investors say real estate is a good investment

Eighty-nine percent of U.S. investors report that they want to incorporate real estate into their investment strategies, according to a recent survey from Better Homes and Gardens Real Estate.

The survey also found that 80 percent of investors think real estate “has been a key factor in helping investors achieve financial success.”  

“Our hope is that this research empowers our industry and our agents to encourage clients to view real estate from a different perspective,” said President and CEO of Better Homes and Gardens Real Estate  Sherry Chris. “The home can provide a lifestyle that enables great things for you and your family, but the goal of homeownership can also be a viable business opportunity. We want to encourage our industry to feel comfortable helping to explore those opportunities with clients.”

According to the study, 30 percent of non-real estate investors would be more likely to invest if they had access to a real estate investment professional for advice, or resources to explain how to get started, Chris said. “The aspiration to invest in real estate exists, and it’s up to real estate professionals to explain the fundamentals and serve as strategic advisers throughout the process as it relates to their markets,” she added.

Of those who have invested in real estate that were surveyed, 52 percent said it led to greater overall financial stability, 51 percent greater long-term net worth and 45 percent said greater monthly cash flow.  Ninety-four percent of investors said they are interested in investing in real estate in the future, with 40 percent planning to do so in the next year.

“Many of those affected by the financial turmoil of years past have since recovered and with that, real estate is being evaluated under different conditions,” said Chris.

Ninety-six percent of millennial investors said they are interested in making a real estate investment, more so than baby boomers (83 percent).

“What we believe we’re seeing, especially on the part of millennials, is that there has been a shift in how they view the home. No longer is it just the American dream to buy a home for one’s family with the hopes that it appreciates in value over time, though this certainly is still true. However, with the rise of Airbnb and other home-sharing platforms, and a more entrepreneurial mindset coming out of the recession, the home is viewed as a tangible asset that can increase your financial standing now and in the long term,” said Chris. “Additionally, interest rates remain low, providing a lower barrier to entry for those looking to enter the market.”

Nearly 80 percent of investors reported that it is important to invest in a property that they could use for themselves or a family member at some point, the survey found.

“Real estate investments can be complex and all investments do require careful consideration. What I think many don’t consider is the dual benefit of a real estate investment. As a tangible asset, it can be both used and profited from, which explains the emotional connection and family considerations we found associated with real estate investments in our survey. I believe Millennials and first-time homebuyers in general don’t realize that there is an alternative opportunity to enter the home buying market through investment properties. Their first home may not be the home they live in themselves, but it could be a financial asset to help them get to their dream home,” added Chris.