MORE AMERICANS THAN EVER ARE INVESTING IN REAL ESTATE – HERE’S WHY

It used to be that professionals were obsessed with stocks. Sure, people still pay attention to the stock market, and it definitely still matters, but back in the day if you weren’t playing the stock market? You were essentially a sucker.

Now, however, it’s rare to find someone outside of the strictly-financial realm that is wild about making money taking a crack at the stock market. A recent Bankrate survey shows that only 17% of Americans use the stock market as their preferred money-making method, which is a considerably low number…but if everyone isn’t investing in the stock market, what are they doing to make extra cash?

The Numbers

That same survey found that 27% of men polled said investing in real estate was their preferred method.



This survey also discovered something interesting in both women and millenials in general. These two subsets of people were more likely to look towards cash-only investments than risky forms of investing like real estate, while the 30 to 49 age group was more likely to choose real estate over other forms of investing. The truth is that the only people who really cared to choose the stock market is those with more education.

So here’s probably what you’re thinking – the more educated and millenials are more likely to choose options outside of real estate. Isn’t that what everyone else should be doing, then?

The Answers

Among all of the populations polled, real estate still reigned supreme – and for good reason. The stock market is very come-and-go. One day you have everything, the next day you have nothing. It’s a very volatile market, whereas real estate ebbs and flows much more naturally.

While you’re more likely to make more money using the stock market correctly, it’s better to have a lot of cash and security than a lot more cash and the thought of losing it all within 24 hours.

Cash investments are on the opposite end of the spectrum. The returns are very small compared to the amount of money you have invested. Interest rates are great for cultivating, but only if you have a lot of money invested to begin with. There’s virtually no risk involved, but this also means the reward is virtually non-existent in the short term.

Real estate investment is the best of both worlds. Is there some risk? Yes, of course. But you’re getting tangible money quickly and in reasonable payouts. When you invest in real estate, you typically aren’t getting hundreds of thousands of dollars laid in your lap every month unless you’re extremely good at it and you have a lot of property. You also aren’t bringing in money at a snail’s pace, either.

With a good middle ground comes perks. You have a reasonable amount of money, typically available at any time, and it’s coming in on schedule. No high octane days where you’re pretty sure you’re about to go broke – real estate investment allows you to sit back, relax, and enjoy life in the moment.

Written by Jason Gordon