The rising inflation patterns worldwide have persuaded many to opt for smart investment options to preserve the value of their money and financial portfolios. Uncertain times like inflation, wars, recession, and pandemics pose a certain level of risk to potential investors. This is why when hard times come, investment experts encourage people to move money out of equities to safer assets like precious metals, government bonds, money-market instruments, and, most importantly, houses or real estate.
But the question many new investors have is whether or not buying a house is a good investment. In fact, this has been a long-unsolved debate, and here is the take on this topic by leading investment firms and financial experts.
Net Worth Is 40 Times Greater
Forbes Advisor, in one of their recent research, put this question of whether or not buying a house is a good investment to nearly two dozen financial and real estate experts. A whopping majority of 57% agreed that buying a house is a good investment – with 38% saying it depends on certain factors and only 5% responding unfavorably.
Adding to that, according to the Federal Reserve’s 2020 Survey of Consumer Finances, homeowners admitted that they have a net worth that is 40 times greater than their renter counterparts, which reinforces and favors the idea that owning a house is a smart investment.
The Advantage Goes Beyond Just The Property
Investing in a house gives much more than just the property or tangible asset itself. It gives you a steady, disciplined, and organized financial mindset that helps you arrive there.
In other words, owning or buying a house will require you to be financially responsible to own a home, where you have to save for a down payment, qualify for a mortgage, and budget for homeownership costs like taxes and insurance.
This strategic wealth-building mindset impacts other financial decisions like savings, spending habits, and investments. Especially developing strong savings habits can make it possible to benefit from other profitable investment opportunities.
This is why some financial experts say owning a house can be forced savings account more than just an investment. Particularly if you tend to burn money through impulsive spending, a house can be the ideal option to direct those unnecessary funds to something that can actually appreciate over time.
Other Unseen Pros
Retirees who have paid off their mortgages say that they have a huge benefit over life-long renters. Although they still incur some form of costs for homeownership like property taxes and maintenance, they have the benefit of equity, the ability to leverage the house in different ways like renting it out (passive income), getting a home equity loan, and can even sell it at a higher rate than what one purchased it for and pocket the profit for emergency or other investment purposes. Better yet, selling a house after it has appreciated in value can make it possible for retirees to move to a bigger and better house to spend their golden years in.
However, it is important to emphasize that buying a house for investment purposes should consider factors such as size, location, and the condition of the economy in general. This is where financial advisory companies like AIX Investment Group can help you with their expertise in the industry.
With over 30 years of cumulative experience in the industry, AIX has a proven track record in offering investors secured returns by analyzing all the possible risks in the market. Their exclusive AIX PROPERTY SECURE investment product allows investors to generate secured and guaranteed rental returns* of 20% at pre-established dates and paid directly to the investors’ beneficiary account. For more information, contact one of their financial advisors at +971 56 732 7222.