It’s true!
When Americans’ thoughts turn to investing, the stock market or real estate are the first options to come to mind. But which of these two investment opportunities is the safest, or the least volatile for the average investor?
Well, according to the statistics, real estate outperforms the stock market when it comes to long term investing.
Let’s take a deeper look.
First, according to the National Council of Real Estate Investment Fiduciaries, real estate investments outperformed stocks and bonds in 17 of the 20 worst quarters between 1990 and 2008. That’s significant. That means real estate won out over stocks in all but three of the 20 worst investment quarters for almost two decades!
And while many American investors place a strong emphasis on stocks, real estate has long been and still is the most favored long term investment of Americans. In fact, some may be surprised to find out that there is more money invested in real estate than in equities in the stock market today.
Of course investing in the stock market has it’s advantages, mainly ease of access and easy sell-off. But real estate has the all-important advantage of much less volatility over time. Because while stock prices rise and fall regularly, real estate is historically much more stable.
And when investing in stocks, there is always the chance that you could lose a good portion of your initial investment as part of a market wide panic sell-off that occurs in days or even minutes, particularly when investing in higher-risk companies. Real estate on the other hand, is an investment that generally works in years, and not days or quarters.
Real estate investors are likely to hold their purchase for from two to ten years, riding out most market downturns and lessening the risks of panic selling. A smart real estate investor can afford to hold out for the most favorable market in order to get the best selling price.
Finally, and most importantly, property values rise and fall during market cycles, but they tend to appreciate over time. That’s right, real estate historically appreciates over time. Making it a smart, and stable long-term investment.
Are you ready to learn more about how real estate investments can be the right choice for building wealth over the long term?
Contact Oasis Realty Investment Group now and we will share with you how we can grow your money safely through intelligent investment in pre-vetted real estate funds.
