Choosing how to invest savings can be a nerve-racking and difficult decision. For years, investing in real estate has been a popular choice for a lot of Americans, but a new survey found that’s no longer the case.
In a recent Bankrate survey, 32 percent of Americans said the stock market was the best choice for investing money they won’t need for a decade. At No. 2, 24 percent of Americans thought cash investments were best.
“For investment horizons of longer than 10 years, the stock market is an entirely appropriate investment. Cash is not, and especially if you’re not seeking out the most competitive returns,” said Bankrate chief financial analyst Greg McBride.
Real estate investments ranked No. 3 this year, which made it the first time in four years that real estate wasn’t the No. 1 choice for investments. Only 22 percent of Americans considered real estate as their top investment choice.
Bankrate attributed the lack of faith in real estate to the slump in the market. With a decrease in inventory and home sales, purchasing a home hasn’t been seen as the easiest option. Home prices also play a large role in it. The average existing-home price was up 5.2 percent in June 2018 at $276,000.