In turbulent times, we gravitate towards the familiar and comforting. Real estate is the macaroni and cheese of investments: always popular, it is a safe bet. With financial markets pulsing from the Silicon Valley Bank collapse, investors are always looking for the best place to put their money: banks, stocks, bonds, or real estate.
Real Estate is the biggest investment for most Americans. According to mynd Consumer Insights Report, seventy-eight percent of Americans equate homeownership with the American Dream. Furthermore, “68% of Millennials and Gen Z agree that investing in real estate is a smart financial decision.”*
Why is real estate a smart financial decision?
Stripping it down to the basics: real estate is tangible, functional, and lasts. Owning property gives you the right to live in it, remodel it, build on it, or rent it out. “Historically, real estate has proven to be a stable investment during inflation,” with home values keeping pace with the rate of inflation.**
3 Reasons Why Real Estate Remains Popular:
1. Tangible – You can live in it! Real estate is shelter — it is a roof over your head and the place you make memories.
2. Appreciating Asset – Real Estate increases in value over time and keeps pace with inflation.
3. Functional – You might buy a house to live in, but when circumstances change you can sell it, or rent it out (long term or short term).
Real estate is a life decision business. Even purchasing an investment property is a life decision, whether you manage your own investment properties or hire a property management company, you need to weigh out how long it makes sense to hold onto an investment depending on its depreciation, value, and rents.
At KALEO, our focus is your experience as a client. This means getting your questions answered. Wondering about the capital gains exemption as a married couple when you sell a home that you’ve owned for decades? Have you recently inherited a property that is held in a trust, but the family needs to sell it? Are you purchasing a rental property with the intent of having your kids live in it and rent it out?
First time home buyers or selling & downsizing, KALEO can help!
Source:
*https://www.mynd.co/real-estate-market-consumer-insight-report
**https://www.forbes.com/sites/jaimecatmull/2022/07/25/does-real-estate-investing-make-sense-during-inflation/?sh=4f22c16166ac
