Real estate is finally making it’s comeback on the investment map, with hopes that last decade’s housing bubble will remain in the rearview. In a recent study from bankrate.com, 27 percent of investors said real estate was the best investment for funds they would not need for at least 10 years. Real estate was not a frontrunner in each of the previous three years that Bankrate held this survey.
When deciding where to invest, it is important to weigh not only the current, but also the long-term return potential of prospective assets. In terms of statistics, the previous three years saw a 9.2 percent return on real estate investments according to S&P/Case-Shiller 20-City Composite Home Price Index. Over the previous 10 years however, the same index shows a 0.4 percent loss. The real estate investment market is certainly becoming more desirable, though there may be a ways to go before it looks as favorable as in decades past.
“For many investors, the tangible nature of real estate simply offers more peace of mind than the intangible nature of stocks and bonds,” said Stephen Doucette,vice president of Proctor Financial in Sherborn, Massachusetts. “But on the down side, people with good credit can borrow large amounts of money to invest in real state, a double-edged sword, depending on how the market behaves.”
While real estate is certainly a risk and reward type of investment, now is the best time to venture into this market . The statistics point to the end of the housing collapse, and the economic conditions and trends surrounding real estate are looking stronger than ever.
If you’re interested in investing in real estate in the Palm Beaches, or looking to sell your luxury waterfront home, Jack Elkins would love to meet. Born and raised in Manalapan, Jack is a second generation agent who knows the ins and outs of Palm Beach luxury real estate.