Investing your money is one of the toughest decisions you need to make in this lifetime. After all, you’ve worked so hard to earn whatever you have. Hence, it’s only right that you choose the right investment to make.
Experts say that real estate is one if not the safest zone to put your money into. The industry is ahead of bonds, mutual funds and other investment vehicles. Besides having lots of potential, the real estate sector has never lost a market. People need to buy homes for their family and to improve their lives, right? If you’re wondering how safe a real estate investment is, read on.
– Millionaires see it as the top asset class this year. To prove that, around 77% of investors with an asset of at least $1 million own real estate properties, whether it be commercial or residential. According to a survey released a New York-based investment bank’s wealth management unit, real estate is the number one alternative investment for 2014. In fact, a third of millionaires in the US plan to buy more this this year.
– Commercial property values have had an increase of 8 percent in the last 12 months and have jumped to 71 percent since hitting the bottom during the recession in 2009. This was reported by the research firm Green Street Advisors Inc. This is the reason that wealthy investors are turning to the real estate market.
– Home prices in 20 cities in the United States have increased up to 24 percent since it dropped to its lowest in 2012. This is because a lot of experienced investors have moved their money from traditional strategies to alternative investments such as real estate and private equity. The reason being that these high net-worth businessmen are more concerned about losses.
– Stocks and other types of investments have become more expensive, while interest rates stagnant or even declining for the next few years. This is why members of the Tiger 21 who have $10 million investable assets increased their average allocation for real estate properties last year from 19 to 21 percent. They also believe that the sector is a particularly attractive investment because the stock market is showing more vulnerability in 2014.
Apart from those reasons, a geologist said that there was a “great bull” last year, but is lame right now. This means that this year is the best time to take advantage of the benefits you can get from investing in real properties.