The real estate industry is booming. More and more investors are choosing real estate as their main investment for their retirement accounts. Based on recent polls and surveys, real estate has been voted by Americans as the most viable and the best long term investment option. The stability, low risk, and high income characteristics of this investment type makes flipping houses very appealing to even traditional retirement investors. We have seen many news reports on stock investing in which these investors are switching to this kind of investment. However, not everyone is familiar with how real estate works. Many investors may not know what to suggest to their clients. This is primarily why the market is seeing a shift with plan providers of retirement plans  bringing in  professional and seasoned real estate advisors on their team.

There are many reasons why the market industry shift makes sense. Experienced and professional real estate consultants have worked with numerous buyers and sellers and they know the different needs of their clients. They know what to provide and they know what will be beneficial for them. It’s not entirely about buying and selling but it is also about making sure that the service being offered could provide for the needs of the client.

They know the different types of real estate investments and how the processes for each type are. An expert real estate advisor would be willing to discuss these types of real estate investments and helps individuals to start their own according to what suits them the most. They would also have key bit of information about the potential investing farm area and be able to recommend a certain neighborhood or area of town.

In the end it is the bonus of communication that is relevant. A professional real estate advisor knows that prompt communication in a turn key venture is one of the crucial steps to being successful at investing in real estate.

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These results are from the Gallup’s recent Economy and Personal Finances poll that asked Americans to choose the best option for long-term investments. Their choices? Real estate, stocks and mutual funds, gold, savings accounts and CDs, or bonds. The last poll was done in 2001 and gold was the favorite from the list.

Source:  http://www.gallup.com/poll/168554/americans-sold-real-estate-best-long-term-investment.aspx?ref=image

We  ♥ Real Estate

When we hit the subprime mortgage crisis in 2007 and we saw what some call the worst housing crisis follow in 2008, Americans were scared. But with the housing market has been improving and we aren’t as afraid to sell our homes anymore especially this year with home prices rising,  This current improvement in prices may be why more Americans now consider real estate the best option for long-term investments. The love affair of real estate has come back into play.

It is important not to read too much into these results however. It is upper-income Americans that are much more likely to say real estate and stocks are the best investment, possibly because of their experience with these types of investments, and possibly because they have the disposible income to invest in these. Home ownership plays a part too. Upper-income Americans are most likely to say they own their home, at 87%, followed by middle (66%) and lower-income Americans (36%). Gallup found that homeowners (33%) are slightly more likely than renters (24%) to say real estate is the best choice for long-term investments.

Keep an Eye on the “Hipster Generation”

While Gallup’s latest results show growing confidence in investing in real estate Americans between 18 and 29 years old are almost evenly split. This age group is a very targeted audience with about one-quarter each saying real estate, stocks, gold, and savings accounts are the best choices for long-term investments. It is a generation of renters that is every Realtor’s dream to convert them to home owners, every last one of them.

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Once again investing in real estate is ranking among the top picks for millionaire investors.

A few weeks ago. Morgan Stanley released results of an in depth survey asking numerous investing questions to over 1,004 U.S. investors. The investors age 25 to 75, with $100,000 or more in investable household financial assets overwhelmingly stated investing in real estate as their top pick for an alternate to playing the stock market. A third of those interviewed had $1 million or more in household financial assets.

This isn’t the first time we have mentioned that the rich are getting richer by flipping houses. A few weeks ago we wrote about what the rich were investing in and what their reasons are in our Real Estate Investing: In the News blog. In it, we cited an article that since the economic crisis of 2008, real estate investing has  attracted many of the super rick seeking out a safe haven. Not to mention a great way to diversify your assets.
The clear indication of all this that investors all over the world are turning to real estate. Every day there are more stories about how the Chinese are buying up Detroit or how foreign investors are buying up our distressed real estate and boosting our economic development. Here are some recent news story links that show what we are talking about:

http://www.theguardian.com/commentisfree/2014/jan/24/chinese-investment-growing-us-good

http://blogs.wsj.com/moneybeat/2014/02/27/china-demand-for-u-s-property-to-boost-investment/

A recent survey released by a NYC investment bank shows that 77% of millionaires already directly own real estate and 33% plan to directly invest more during 2014. The fact that these knowledgeable investors are moving out of stocks will continue to place pressure on the more traditional investing in stocks and bonds.

And if our advice and the surveys cited above still don’t convince you, maybe you will listen to the most successful investor we know of. Warren Buffett. In his annual letter to  Berkshire-Hathaway shareholders, the legendary investor offers his wisdom on anything from his rules for investing in stocks to the US and global economies. This year he offers what he learned through 2 investment properties. One purchase, a 400 hectare farm in Nebraska, which cost him $280,000 in 1986. The other purchase, which he made with a small group of investors a few years later, was a retail property in New York. The one similarity these two tales have is that he purchased both assets after property collapses. He goes on to list 5 tips on real estate investing from his perspective.

Click here to read the full article from the March 17th issue of Fortune Magazine

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 Investing in Real Estate Gives You Leverage

Once you get past the notorious “first flip”  money will be easier to come by. This is one of the best things about investing in real estate; you no longer have banks on your hit list. When you get a few flips under your wings, banks will be more open to lending to you as an established investor. With your properties as leverage, you can easily loan money from the bank for both personal and non-personal use.

Additional Tax Reduction Strategy

We have talked about it before. HUGE tax advantages to investing in real estate. Having one real estate property and even more makes it  easier for you to reduce your taxes. This is due to the fact that you can use personal expenses and convert them into expenses that you can deduct to the overall revenue of your property. More so, you will be able to write off some of the expenses as daily maintenance and checking in on your property, or expenses of which you required to check on the property managers or contractors you have hired.

Save For The Future

Americans are the worst savers in the world.  Unfortunately in this day and age pension plans and 401k plans are not enough money for you and your family to live comfortably after you retire. Investing in real estate can be the alternate to a lacking retirement plan and those risky stock market games.

Investing in real estate properties right now helps you save money for the future because as long as you manage it right, your property will be profitable. In fact, your future self will definitely be thanking you right now if you decided to invest in a couple of real estate properties.

Now there are plenty of entrepreneurs that have failed at the hands of flipping houses. However, much of them did so because they invested in real estate and seemed to have forgotten to make it more of a hands-on effort of making money. While real estate investment is a passive-income, this does not mean that you should be passive as well when handling it. You have to educate yourself and make sure that you are making the right decisions.

In the process of accumulating wealth, investing in real estate is definitely a huge part of that formula. Although we are not suggesting that you will become rich overnight or become rich beyond your wildest dreams, you will have enough money to make you happy, worry-free and be financially independent. Investing in real estate will help you achieve those life goals with out taking away any of that precious time from your family or time from doing the things you love.

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