Well, a recent poll from Gallup shows the answer is YES! In fact, real estate was voted the best long-term investment for the 11th consecutive year. This graph demonstrates it beat out other investments including gold, stocks and bonds.
Lawrence Yun, Chief Economist at the National Association of Realtors notes:
“Homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40x higher than that of a renter”
That’s because owning a home grows your net worth over time as your home appreciates in value and as you pay down your mortgage. And, since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep renting, you’ll miss out on those monthly housing payments going toward your home equity.