Housing affordability is better than ever, but there still may be too much risk in the market for young investors to bet on housing as an investment.
A well-managed retirement fund, including a 401k, which often comes with matching money for employers, is a better deal, according to Millionaire Corner a web site where investors go to rub elbows with their peers.
“Historically favorable housing affordabilitiy conditions are making it easier for buyers to enter the market, despite the unnecessarily tight credit conditions,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, FL.
While buying a home for shelter makes more sense, the advice for young investors is to go with the retirement plan (69 percent), rather than cash in on low home prices (20 percent). Investor advice is even harder on investing in the stock market (7 percent) or saving money in a certificate of deposit (4 percent) or some other savings vehicle, according to Millionaire Corner.
Among older wealthy investors, 68 percent say their home value is lower or substantially lower today, compared to five years ago.
Still feeling burned by real estate investments in the red, 54.5 percent of older wealthy investors don’t believe it’s a good time to invest in real estate, according to Millionaire Corner.
Hover over and click the infographic below to enlarge and learn more about investing in today’s real estate market.