By Suzanne De Vita

Signaling growing confidence in the housing recovery, a majority of Americans once again named real estate the best long-term investment – a trend now continued for two consecutive years, according to a recently released Gallup poll.

Real estate edged out long-term investment options like stocks/mutual funds, gold, savings accounts/CDs and bonds, with 31 percent of Americans favoring housing for long-term gains. Twenty-five percent of Americans named stocks/mutual funds as the best investment long-term. Gold dropped from frontrunner in 2011 and 2012 to third, while savings accounts/CDs fell to 15 percent. Bonds dipped to just six percent.

The findings represent a significant change in consumer sentiment akin to the ongoing recovery. Notably, more Americans preferred savings accounts/CDs in 2012, as financial security remained critical for many in the wake of the crash.

Moreover, all major gender, age and income groups topped or tied the preference for real estate, coinciding with a number of recent initiatives set to increase opportunities for a diverse range of would-be buyers. These include the Fannie- and Freddie-backed three percent down payment program and the reassessment of credit strictures that have historically prevented borrowers from obtaining a mortgage.

Between July 2002 and April 2007, preferences for real estate fluctuated with the market, peaking at 50 percent during the boom and sinking to 37 percent as the economy nosedived. Preferences for real estate continued to fall through 2008 and 2009.

The Gallup poll was conducted April 9-12, 2015 from a random sample of 1,015 adults aged 18 and older living in all 50 U.S. states and the District of Columbia. For a complete look at responses, questions and trends, click here.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Southern Homes Elite
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907

Reprinted with permission from RISMedia. ©2015. All rights reserved.

A: They are literally everywhere, even in wealthy enclaves. What sets them apart is price.  They have lower market value than other houses in the immediate area because they have either been poorly maintained or abandoned.

To determine if a property that interests you is a wise investment will require a lot of work. You will need to figure out what the average home in the area sells for, as well as the cost of the most desirable ones.   

Experts suggest that novices avoid run-down properties needing extensive work.  Instead, they recommend starting with a property that only needs minor cosmetic work – one that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping, and new appliances.

Also, keep in mind that a home price that looks too good to be true probably is. Find out why before pouring your hard-earned money into it.

When looking for a fixer-upper, some experts suggest you follow this basis strategy: find the least desirable home in the most desirable neighborhood. Then decide if the expense that is needed to repair the property is within your budget.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Southern Homes Elite
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907

Reprinted with permission from RISMedia. ©2015. All rights reserved.