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20 October 2016

Investing and Real Estate: The Real Stats You Should Know

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A recent national survey conducted by Better Homes and Gardens® Real Estate (BHGRE®) looked at the prevalence and facts about investing in real estate today. The study reveals that an overwhelming 89 percent of U.S. investors are interested in putting their money into real estate. Family motivations and optimism around long-term financial stability are driving factors, according to the study.

The study found that nearly all (96 percent) who have invested in real estate believe their decision helped them achieve some sort of financial success. Additionally, 94 percent of the people who have invested in real estate are interested in making a future investment of this kind. Eighty percent of investors who have never invested in real estate, most of whom are millennials, expressed the intent to do so in the future.

The survey found that family is a driving motivation behind real estate investments. A large majority of parents (83 percent) who invest said they would consider buying a property to co-manage with their children, to have their children live in, or to use to fund college tuition.

bhgrealestate.com - Investing and Real Estate: The Real Stats You Should Know

On the survey’s findings, Sherry Chris, president and CEO of Better Homes and Gardens Real Estate, shared that “to see consumer confidence of this magnitude is very promising. Through this research, we’ve discovered that a majority of investors, including millennials, gen x-ers and baby boomers, believe real estate is the best way to diversify an investment portfolio. What’s fascinating is that even when it comes to real estate investments, for many, there are still emotional drivers that accompany this type of transaction.”

Many people, however, expressed concerns about investing in real estate because they don’t feel well educated in the space; it requires too much time and starting capital, and they feel it’s risky. Of these people, 30 percent said they would be more likely to invest if they had access to a real estate investment professional for advice and guidance.

Below are more notable findings from the survey:

  • 53% of respondents expect a real estate agent to provide advice on managing the investment
  • 49% of respondents expect a real estate agent to provide guidance on terms
  • 47% of respondents expect a real estate agent to provide down payment advice

It’s clear that the aspiration to invest in real estate exists, but it is up to real estate professionals to provide guidance and be a resource throughout the process. As a professional on the modern real estate scene, you should now feel empowered to provide the necessary information and guidance needed to accelerate this opportunity for both current and future real estate investors, with the support of BHGRE’s findings and information.

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