From Stocks to Real Estate

Investment Dollars Will Flow Into Real Estate During The Next Stock Correction…

Year over year, the average home value rose 6.9%, a faster pace than historic averages. Long term, the average rise in DC has been even greater. Since 2000, real estate in the city as a whole has risen at 8.47% a year, nearly twice the national average.

Where’s the market headed?

Well, millennials are now the largest group in America, finally surpassing baby boomers in numbers. According to RealtyShares’s 2017 Real Estate Investment Survey, 55% of 20 to 35 year olds are interested in real estate investing, supporting the research from Fannie Mae in which 85% of millennials said they believe real estate is a good investment.

So, the youth are going to be putting money into real estate. I know everyone is talking about how little this group earns as a whole, but don’t forget that baby boomers will be transferring a lot of wealth to their heirs, and that money will be placed somewhere? Startups, which are all the rage right now, will get a fair share, but real estate across the major cities should as well.

An inheritance of $1 million passed down could be invested to generate an income of $75,000 to $120,000+ a year right now. Plus, over 30 years, that’ll grow into even more wealth.

Nationwide, that’s 75.4 million people that won’t be entering “retirement age” for another 30 years. We’ve already been through one major real estate crisis in 2008. The first since 1929. Chances are we’re not going to see another one for a while.

Conclusion

That means investments in real estate to produce income and long-term capital appreciation should be on everyone’s radar. That is, unless you’re already able to make 15% year over year in stocks or some other field. Few can do that, so real estate will get a bulk of assets.

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