Real estate has outperformed the stock market by 100% since December 31, 2000 — reason enough for anyone, young or old, to invest in homes instead of the stock market. But, there’s more.
It seems millennials, specifically, prefer property investing over stock picking. A new RealtyShares study shows 55% of millennials want to invest — or are already invested — in real estate. Fannie Mae, meanwhile, reports that 85% of the millennial generation views real estate as a “good investment.”
According to Gallup, interest in real estate investing among younger Americans has already impacted stock market investing overall: in 2007, approximately 67% of Americans had money in the stock market; by 2016, that number had fallen to 50%.
So, why real estate over stocks?
“Real estate is something you can touch and feel, and stocks aren’t,” says real estate investing expert Abhi Golhar, who featured Pioneer Homes founder and CEO Al Beahn on his popular podcast. “Most importantly, with real estate, you can get income, depreciation, equity, appreciation, and leverage. That’s something stocks don’t offer.”
Not to mention the higher returns (Detroit rental properties regularly produce a double-digit ROI).
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