From stocks to gold bars, Americans are always looking for the next great investment opportunity. Where can you put your money to get the most return on your dollars? Well, what if the strongest investment opportunity isn’t some new fad like cryptocurrency, but something tried and true that’s nearly guaranteed to be a strong long-term investment. We’re talking about real estate!
What Does the Housing Market Look Like?
There have been a few housing market mishaps over the past few decades. Everyone remembers the housing bubble of the mid-2000s, and it might give some a bad taste for investing in real estate.
Now, interest rates are back to all-time lows, and it’s prime time to buy! But buyers are still wary to invest because if it ends up being just be another bubble, they’ll end up stuck in an investment they can’t get back.
Luckily, that doesn’t seem to be the case at all! The housing market at this time is truly unique. Interest rates are at an all-time low and the government is handing out stimulus checks to bolster the economy. With buyers at the ready, sellers can basically name their price. In addition to the low interest rates, home prices are steadily increasing, putting dollar signs in sellers’ eyes. It’s basically a win-win no matter which side you’re on!
Is It Smart to Invest in Real Estate Right Now?
The COVID-19 pandemic has put a lot of things on hold, and many people are nervous to make major changes (like selling their house). Although there might be a shortage of homes on the market, there’s never been a better time to invest!
According to a Gallup poll, real estate is considered the strongest long-term investment opportunities there is! Here’s how the list stacks up:
Real estate – 41%
Stocks – 26%
Gold – 18%
Savings accounts – 9%
Bonds – 3%
Why such confidence? Because everyone expects house prices to continue to rise! While prices took a nosedive in the mid-2000s market crash, house pricing trends today are considered sustainable by many experts. Even when the rest of the world shut down from the COVID-19 pandemic, the housing market never really faltered. That just goes to show the strength of the housing market right now.
The Bottom Line
Even through recessions, real estate has always been a strong long-term investment, and now is no different. With interest rates at an all-time low, buyers have the power to get properties they could previously only dream of at much lower rates. As home prices continue to rise, their investment money is safe for the long haul.
Are you thinking of broadening your portfolio? There are plenty of properties available on the Big Island. While the temperatures might be comfortable here on the Island, the housing market has been hot, with 20% price gains from last year alone! Not only a real estate investment keep your money safe, but it’ll also give you a wonderful place to sit back, relax, and watch your investment mature—or rent it out for some extra income!
Either way, there aren’t many downsides to buying in Hawaii. Contact me to find for that perfect tropical investment property you’ve been looking for.
Aloha, and welcome to Hawaii.