A national survey of U.S. investors by Better Homes and Gardens® Real Estate found 89% of U.S. investors surveyed are interested in incorporating real estate into their investment strategies, the Madison, N.J. company reported Tuesday. Moreover, 80% of U.S. investors surveyed believe a real estate portfolio is one of the best financial legacies they could leave for their family.
Nearly all (96%) of U.S. investors surveyed who have invested in real estate believe their decision has helped them achieve some form of financial success:
- 52% greater overall financial stability
- 51% greater long-term net worth
- 45% greater monthly cash flow
- 94% percent of those who have invested in real estate are interested in making a future investment of this kind
- 84% who have invested in real estate indicated that they will make another real estate investment
- 2 in 5 planning to do so in less than a year
80% of investors surveyed who have never previously invested in real estate expressed an interest in making this financial commitment:
- 96% of Millennial investors are interested in making a real estate investment, showing greater interest than their Boomer counterparts (83%).
- Millennials are more drawn to personal real estate investments (79%) than commercial (49%).
Scott and Amie Yancey (Flipping Vegas), only a small portion of respondents (29%) view property flipping as a beneficial real estate investment. Rather, research revealed that family is a driving motivation behind real estate investments.
- 79% of investor respondents feel it is important to invest in a property that they could use for themselves or a family member at some point.
- 83% of parents who invest would consider buying a property for or with their child or grandchild to:
- Co-manage and profit from together (40%)
- Manage and profit from it themselves (39%)
- Have their children or grandchildren live in the home during college (35%)
- Fund college tuition in the future (35%)
Unlike many other investments that can be made with the click of a button, real estate investments are often complex and require careful consideration. In fact, 89% of investors who have made a real estate investment in the last five years feel it is important for a real estate investment property to be geographically close, so that they could either manage or use it themselves.
For non-investors, this commitment can be a deterrent. 89% of non-real estate investors surveyed who cited concerns about jumping in on an investment property, the top reason was that they don't know enough about investing in real estate (42%), followed by it requires too much time (41%), demands too much starting capital (35%) and that it is "risky" (28%).