NEW YORK – Hollywood has glamorized making fast money on stocks, But they’re no longer America’s favorite long-term investment.
A new bank-rate survey finds real estate is king, and real estate experts are not surprised.
“It’s not sexy like some of these cryptocurrencies might be or when the stock market has a big run,” said David Greene a real estate expert. “But that’s also why I love it. It is much more predictable than other asset classes and you make money in several different ways.”
Stocks ranked a distant second in the survey. Cash investments, like a savings account finished third, followed by gold and precious metals. Bitcoin and cryptocurrencies ranked the lowest.
If you’re thinking about investing in property, experts say, take advantage of historically low interest rates and buy a rental property and get tenants to pay off your mortgage.
“The easiest way that you can ever become a millionaire is take out a million-dollars in real estate debt and let someone else pay it off for you,” said Greene.
Experts also say real estate is a hedge against inflation. As the house goes up in value, rents also climb but your mortgage payment stays the same.
“That creates a difference between how much you’re paying versus how much you’re earning and the bigger the difference that you get the more money that you’re able to make,” Greene.