honolulu luxury investments

The Gallup organization recently released a survey in which Americans were asked to rank what they considered to be the “best long term investment.” Real estate ranked number one, with 35% of those surveyed saying it was a better long term investment than stocks & mutual funds, gold, savings accounts or bonds.

Here is the breakdown:

#LongTermInvestment

The survey revealed that real estate was the number one choice among each of the following groups:

Men
Women
People between the ages of 18-29
People between the ages of 30-49
People between the ages of 50-64
People 65 and older
People with annual earnings of less than $30,000
People with annual earnings between $30,000 and $74,999
People with annual earnings of over $75,000
People with a college degree
People without a college degree

Buying a Home

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!

Other interesting findings in the report include:

Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.

Some markets may tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.

Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, meet with a local real estate professional who can help you find your dream home.