Real Estate Brings Higher Returns on Investment than the Stock Market

Did you know that investing in real estate actually brings higher returns than investing in the stock market? Of course, finding that perfect home for your family or the home you have always dreamed of is reason enough to invest in a property. But, when you do this you’ll also be making a financial decision that can bring benefits years later.

This chart, based on information from MSN Money and Case Shiller, reveals that real estate investments bring a 65.8 percent return on investment. This is about 22 percent higher than the return on Dow investments, 38 percent higher than the return on S&P investments and a whole 62 percent higher than NASDAQ investments.

There’s no question that these statistics are stunning. The Wellesley real estate market is strong and active, so now is the ideal time to invest in real estate.

Tips for Investing in Real Estate

To make sure you get the highest return possible when you invest in real estate property, you need to keep a few things in mind.

Plan to Settle In

When you live in a home for a few years, and allow time for its value to appreciate enough to cover the selling and moving costs and more, you’ll be more likely to come out on top with a real estate investment. In general, it’s a good idea to plan to live in a home for five or six years if you want to see substantial value appreciation.

Location Matters

Look for areas that are developing quickly or that are near things like businesses, schools, public transportation and major parts of the city. These areas tend to attract more interest from buyers, so you’ll be more likely to be able to sell your home quickly when the time comes.

Homes with Good Features are Easier to Sell

This probably seems like an obvious tip, but it’s one worth noting: homes with better features are easier to sell. Keep this in mind when you invest in property and look for options that boast plenty of bedrooms, large amounts of land and extras like a new appliances or a swimming pool.

Be Open to Making Changes

There are all kinds of changes you can make to a property to increase its value. Doing things like adding new appliances, remodeling rooms, installing new carpet and purchasing a new furnace all make a property more valuable. When you are open to making these changes, you can increase the value of a property significantly and get a higher return on your investment.

Research shows that investing in real estate can actually bring a higher return than investing in the stock market. The key to making a wise financial decision is to think carefully about the kind of property you invest in and work with a real estate agent. For more information on investing in real estate, visit the Christine Norcross & Partners website.

If you are interested in finding a Wellesley home for sale, contact Christine Norcross at 781-929-4994. You can also find us on Facebook for more information about current market trends and real estate.