A recent poll by Gallup Inc, the famous research company known for its public opinion studies, revealed that Americans prefer to invest in real estate over stocks, bonds and gold for long term investment.
Results of the poll are based on telephone interviews conducted from April 3 to 6, 2014 on random 1,026 American adults aged 18 and above.
The poll found:
- 30 percent of the Americans believed real estate was the best long term investment option.
- 24 percent said investing in gold or stocks and mutual funds would reap the best returns in the longer run.
- 14 percent said they would invest in a savings account or CDs for long term benefits.
- 6 percent said they would opt for stocks.
Experts believe that the preference is based on the steady growth of the property market. Home prices have been rising across the country. The U.S consumer index spiked to a six-year high in March as prices inched up 13.2 percent in January on a year over year basis.
"The steady pace of home price gains should help further support the housing market recovery during the year," Gennadiy Goldberg, U.S. strategist at TD Securities wrote in a research note, reports MarketWatch.
Experts also predict prices to rise by 6 to 8 percent this year. Record low mortgage rates have fuelled faster home sales. However, tight supply has become a problem.
While the poll found real estate to be the most desired long term investment option among Americans, it also revealed that the preferences differed among people from disparate economic backgrounds.
They found that households that earned less than $30,000 a year chose gold as their preferred long term investment option. Stocks and property were the most popular investment option among the high-income group, which earned $75,000 and more annually.
The younger demographic (aged between 18 and 29) chose savings account over gold, stocks or property.
"What Americans view as the best choice for investing reflects myriad factors and is influenced by how the investment is currently performing and respondents' biases toward where they are invested," the report states.
Watch the video below for more poll highlights:
