The stock market took another dive last week and you may be starting to think about what the best long-term investment is. I know I am! The real estate market has recovered, and so has the belief in housing as a long-term investment. Most Americans (when polled by Gallup), claimed that they are most comfortable investing in real-estate.
Real estate is frequently mentioned as the best alternative to stocks for long-term investment. That’s because real estate has produced a similar return to stocks, at least since World War II. To actually understand the monetary value, consider this:
The median price of a single-family home in the US was under $3,000 in 1940. But as of March, 2018, the Federal Reserve Bank of St. Louis reports that the median price of an existing home sold is $241,700. That’s a more than 80-fold increase in price. (US Census Bureau)
Barrier to Entry
Another great thing about investing in real estate is that the barrier to entry is relatively low. The most basic way to invest in real estate is by owning your own home. Unlike other investment, real estate can be heavily leveraged, particularly if you’re an owner occupant. Often, owner occupants can put as little as 3% down. If that were the case, one could purchase a $200,000 house with a down payment of $6,000. I the value of the $200,000 house doubles in 20 years, the investor would get a $200,000 return on a $6,000 investment. And, that doesn’t even count the fact that the mortgage on the property would be more than half aid after 20 years.
Next Step
If you are ready to make a long-term investment in real estate, contact the Carroll Team at 800.470.0045. We specialize in the Truckee area and have several active listings that range from $90,000 – $1,849,500.
Browse Our Listings
| 11875 Rio Vista Drive, Truckee, CA 96161 | $90,000 / LOT |
| 11036 Henness Road, Truckee, CA 96161 | $1,849,500 / 4 Beds |
| 10534 Whiskey Jack Court, Truckee, CA 96161 | $850,000 / 3 Beds |
| 16356 Greenlee, Truckee, CA 96161 | $1,399,000 / 3 Beds |
| 12927 Palisade Street, Truckee, CA 96161 | $465,000 / 2 Beds |
Photo Fact
The photo featured here is of 16356 Greenlee, Truckee, CA. This stunning mountain architecture situated on 5 acres in the heart of Russell Valley is for sale. Soak in gorgeous views of the Valley, Mt. Rose & Northstar through soaring windows and from the extensive wrap-around decking & lower patio.
Sources:
- Syed. “Best Long-Term Investment Strategies & Products.” Good Financial Cents, 8 Nov. 2018, www.goodfinancialcents.com/best-long-term-investments/.
- Gallup, Inc. “Americans’ Views on Best Long-Term Investment (Trends).” Gallup.com, 2018, news.gallup.com/poll/233369/americans-views-best-long-term-investment-trends.aspx.
