Recent findings from a national survey of U.S. investors by Better Homes and Gardens Real Estate recently showed that confidence and intrigue in real estate investment ranks high, with 89 percent of U.S. investors showing interest in incorporating real estate into their investment strategies.
“To see consumer confidence of this magnitude is very promising,” said Sherry Chris, President and CEO, Better Homes and Gardens Real Estate “Through this research, we’ve discovered that a majority of investors, including Millennials, Gen Xers and Baby Boomers, believe real estate is the best way to diversify an investment portfolio.”
Nearly all of U.S. investors surveyed who have invested in real estate believe their decision has helped them achieve some form of financial success with 52 percent anticipating greater overall financial stability, 51 percent expecting greater long-term net worth, and 45 percent expecting greater monthly cash flow. Additionally, 94 percent of those who have invested in real estate are interested in making a future investment of this kind.
Broken down even further, 84 percent who have invested in real estate indicated that they will make another real estate investment and 2 in 5 plan to do so in less than a year.
For Millennial investors, 96 responded saying they are interested in making a real estate investment, showing greater interest than their Boomer counterparts at 83 percent. Likewise, Millennials are more drawn to personal real estate investments at 79 percent compared to those drawn to commercial investments at 49 percent.
“The aspiration to invest in real estate is there, yet it is up to real estate professionals to explain the fundamentals and help to serve as strategic sources throughout the process,” said Chris. “Our hope is that this research empowers our industry to provide the resources and develop the necessary information to accelerate this opportunity for both current and future real estate investors.”
While the single-family investment and rental market continues to redefine its borders, the investment landscape offers opportunity for many in a volatile marketplace that has often been misunderstood and sometimes fragmented. Navigating this complex and dynamic terrain takes careful planning and strategic partnerships.
The survey shows that 89 percent of non-real estate investors surveyed who cited concerns about jumping in on an investment property, responded saying the top reason was that they don’t know enough about investing in real estate. There is a clear need for real estate professionals and their insights as the survey shows 30 percent would be more likely to invest if they had access to a real estate investment professional for advice, or resources to explain how to get started.
One way the industry is responding to this sector of the market is through the Five Star Single-Family Rental Summit. The summit provides an important conduit for SFR leaders to have the pivotal conversations that will push this industry forward. Top subject matter experts and skilled SFR practitioners will lead discussion panels and training sessions that will answer questions and offer viable solutions related to property acquisition and management, financing, strategies for small, mid-cap, and large investors, and new developments related to technology and professional services.