According to Gallup, real estate has been crowned the top long-term investment for a whopping 12 years in a row. Just take a look at the graph – it speaks volumes.
But why does real estate continue to reign supreme as a top-notch long-term investment? Unlike other investments that can feel a bit like riding a rollercoaster with all the ups and downs and ongoing risk factors, real estate follows a more predictable and positive pattern, particularly in the DC area. History shows home values usually rise, and that means as time goes by, your house is likely to appreciate in value. And that helps you grow your net worth in a big way.
The advantage real estate has is you are usually building wealth with someone else’s money. If you have $100,000 and you are trying to decide whether to invest it in the stock market or put it into a down payment on a $500,000 home, remember that in the stock market you will be earning a return only on the $100,000. In the home, any increase is based on the $500,000. So, while a 10% return in the stock market would earn you $10,000, a 10% return in the real estate market would earn you $50,000!
If you are on the fence about whether to buy, we’d be happy to sit down with you over a cup of coffee and discuss the process and your options.