Is a home a good investment? Most Americans think so. A recent poll by Gallup indicated that owning a home was ranked ahead of gold, stocks, mutual funds, savings accounts, and bonds as the best long-term investment. Interestingly enough, from 1890-1990, real home prices (inflation-adjusted) rose a mere 0.2% annually, with a virtual flattening of values the last 25 years. Meanwhile, the S&P 500 has garnered more than 6% in inflation-adjusted average annual return. Bonds were half that number, and gold somewhere in the 4% range over the past 33 years. Sizeable differences, for sure, that may surprise most. A home is an important investment that can offer us protection, well-being, a place to raise a family, and countless other intrinsic benefits. Looking at it as an investment with the expectation of significant return might be disappointing. Stay diversified.
PLEASE NOTE LIMITATIONS: Please see Important Disclosure Information and the limitations of any ranking/recognitions, at www.fostergrp.com/info-disclosure/. A copy of our current written disclosure statement as set forth on Part 2A of Form ADV is available at www.adviserinfo.sec.gov.