Should You Consider Investing in Real Estate?3/27/2017
Real estate is becoming an investment of choice, and many investors are either abandoning the more traditional vehicles such as stocks and bonds or using real estate to diversify their portfolios.
A recent RISMedia article pointed to a survey recently undertaken by Better Homes and Gardens Real Estate, which found that “(n)early all (96%) of U.S. investors surveyed who have invested in real estate believe their decision has helped them achieve some form of financial success.”
The interest in investing in real estate may be driven by our largest demographic—the millennials, who, according to the survey, show a greater interest in making a real estate investment than do boomers. Millennials in particular are more interested in personal real estate purchases (homes) than in buying commercial properties; the survey noted that “79% of investor respondents feel it is important to invest in a property that they could use for themselves or a family member at some point.”
There are various ways even a small investor can participate in real estate investments, such as a self-directed or real estate IRA. However, many fear they aren’t sufficiently knowledgeable about real estate investing. As the RISMedia article points out: “Unlike many other investments that can be made with the click of a button, real estate investments are often complex and require careful consideration.”
To ensure that your investment will be a good one, it’s important to consult with a financial professional who is familiar with real estate investing, as well as an investment-savvy real estate agent.