According to a Gallup poll, it’s real estate, not stocks, that are considered to be the best investment. The poll indicates that 35% of Americans believe real estate to be the superior long-term financial investment, compared to 27% who say stocks are the better investment.
Stock ownership has not quite reached pre-recession levels, and previous Gallup analysis showed that stock ownership has declined among most major U.S. subgroups since before the recession, with the exception of upper-income and older Americans.. Gallup notes that their poll was conducted April 1-9, in the midst of a bull stock market and that with home values higher than they were before the recession, noting the likely returns.
A 2018 Wells Fargo/Gallup survey asked U.S. investors with $10,000 or more in investments a similar question about the best long-term investment, and respondents were more optimistic about stock investment, while just 19% chose real estate as the best investment. The key different, Gallup notes, is that the question wording asked respondents to exclude their primary home when thinking of real estate as an investment. This means that while many Americans see their primary home as a solid investment, a second home or another type of real estate investment, such as a rental property, is not as appealing as stocks are.
For real estate investors, “opportunity zones” may be the way to go.
Department of Housing and Urban Development Secretary Benjamin Carson was recently interviewed on Fox News’ "The Next Revolution with Steve Hilton” to talk the proposed new regulations aimed at making it easier for investors to take advantage of tax breaks for investing in “Opportunity Zones” in low-income areas.
Going forward into 2019, real estate investment will be about “looking good,” according to Chris Dunlap, VP and Risk Services Lead for Hub’s National Real Estate Practice.
“Properties that maintain—or improve—their standing will be best positioned to keep costs at bay,” said Dunlap. “The proven way to do this is to invest in tighter risk management, including disaster preparedness ahead of the next catastrophic event and engaging your property policy broker to do what they do best—negotiate on your behalf.”