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According to Bankrate’s latest Financial Security Index poll, exactly one-quarter of Americans surveyed said they would rather invest in real estate with money they would not need for the next 10 years, beating out cash investments such as CDs and savings with 23 percent and the stock market and gold or precious metals with 16 percent each. Bonds were the least popular investment option for money not needed over the next decade, with 5 percent of respondents preferring that choice.
According to Bankrate, many favor real estate investments over the other ways to invest because of the volatility and uncertainty of the stock market—and it is a tangible investment, as opposed to stocks. Real estate investments do have their downside, however; there is the cost of maintaining the house, plus the homeowner cannot put the asset in an account and forget about it the way they can with stocks or bonds.
Americans 55 and older remain a major piece of the U.S. housing market and will continue to be for a long time, because they aren’t playing by conventional logic, according to Freddie Mac. While conventional wisdom suggests that baby boomers should sell their home, downsize, rent, or move to an age-specific community, it looks like they will be part of the housing market for years to come. More than a third of 55 and older homeowners still have a mortgage, and a majority of those with a mortgage have more than ten years left until their loan is paid off.
