Why real estate is America's favorite long-term investment and how you can easily get started

Image Credits: UnsplashImage Credits: Unsplash
  • Real estate remains a favored long-term investment for many Americans due to its tangible nature, potential for appreciation, and income generation capabilities.
  • REITs offer an accessible and diversified way to invest in real estate, especially for those lacking the capital or desire to manage properties directly.
  • Understanding the tax implications and diversifying investments across different property sectors can optimize returns and minimize risks.

Real estate stands out as a perennial favorite among Americans. According to a recent Gallup survey, 36% of Americans consider real estate to be the best long-term investment, surpassing options like stocks, gold, and savings accounts. This preference is not without reason. Real estate offers tangible benefits, potential for appreciation, and a sense of security that other investment vehicles often lack. For those eager to dive into real estate investment, Real Estate Investment Trusts (REITs) present an accessible and effective entry point.

Real estate has consistently topped the list of preferred long-term investments for several reasons:

Tangible Asset: Unlike stocks or bonds, real estate is a physical asset. This tangibility provides a sense of security and stability, appealing to those who prefer owning something they can see and touch.

Appreciation Potential: Historically, real estate values have shown a tendency to appreciate over time, making it a reliable store of wealth.

Income Generation: Real estate can generate steady income through rental yields, offering a dual benefit of capital appreciation and income generation.

Despite these advantages, investing in real estate traditionally requires significant capital, time, and effort, which can be daunting for new investors.

The Rise of Real Estate Investment Trusts (REITs)

For those looking to invest in real estate without the hassle of direct property management, REITs offer an attractive alternative. A REIT is a company that owns, operates, or finances income-generating real estate across various property sectors. Here’s why REITs are gaining popularity:

Accessibility: REITs are publicly traded, allowing investors to buy shares much like they would with stocks. This makes real estate investment accessible to those without large amounts of capital.

Diversification: Investing in REITs provides exposure to a diversified portfolio of properties, reducing risk and enhancing potential returns.

Dividend Income: REITs are required to distribute at least 90% of their taxable income as dividends, providing investors with a steady income stream.

Getting Started with REITs

Investing in REITs is straightforward and can be done with relatively small amounts of money. Here’s how you can get started:

Research: Begin by researching different types of REITs—equity REITs, mortgage REITs, and hybrid REITs. Each has its own risk and return profile.

Choose a Platform: REITs can be purchased through brokerage accounts, similar to stocks. Many online platforms offer easy access to REIT investments.

Diversify: Consider diversifying your REIT investments across different sectors, such as residential, commercial, and industrial properties, to mitigate risk.

Tax Considerations: Be mindful of the tax implications of REIT dividends, which are typically taxed as ordinary income. Consider holding REITs in tax-advantaged accounts like IRAs to minimize tax liabilities.

The Future of Real Estate Investment

The real estate market is poised for continued growth, driven by factors such as urbanization, population growth, and economic recovery post-pandemic. However, potential investors should remain vigilant about market trends and economic indicators that could impact property values and rental yields.


Housing United States
Image Credits: Unsplash
HousingJuly 8, 2025 at 1:00:00 PM

Bank of America warns of emerging 'less for more' housing market pattern

The housing market is playing a weird game right now. If you've been casually browsing real estate apps or walking through showrooms lately,...

Housing Malaysia
Image Credits: Unsplash
HousingJuly 3, 2025 at 7:00:00 PM

How retirees are building big value in small spaces

For decades, retirement planning in Malaysia followed a familiar blueprint: build a family home, raise children under one roof, and eventually spend one's...

Housing United States
Image Credits: Unsplash
HousingJuly 2, 2025 at 1:00:00 PM

Why 2025 may be the right time to buy—and how to prepare

Rising home prices. High mortgage rates. Low inventory. For years, these were the three walls trapping homebuyers. But in 2025, the housing market...

Housing Singapore
Image Credits: Unsplash
HousingJuly 2, 2025 at 1:00:00 AM

Is spending half your salary on rent in Singapore a mistake—or just reality for expats?

When Reddit user u/Internal-Parking7010 asked whether it was “financially reckless” to spend nearly half her monthly salary on rent in Singapore, she probably...

Housing United States
Image Credits: Unsplash
HousingJune 23, 2025 at 5:30:00 PM

Why electricity prices are rising in the US—and what it means for your budget

Electricity bills are getting more expensive in the United States—and faster than most households planned for. According to the latest Consumer Price Index,...

Housing Singapore
Image Credits: Unsplash
HousingJune 18, 2025 at 3:30:00 PM

More homeowners turning to HDB lease buyback scheme for retirement income

As Singapore’s population grows older and household retirement savings remain uneven, the challenge of funding longer lifespans is moving from private concern to...

Real Estate United States
Image Credits: Unsplash
Real EstateJune 15, 2025 at 11:30:00 PM

Suburban rentership trend signals shifting capital and affordability risks

What’s unfolding in U.S. suburbs is more than a demographic drift—it’s a capital reallocation under macroeconomic duress. Surging rentership rates in outer metro...

Real Estate Malaysia
Image Credits: Unsplash
Real EstateJune 5, 2025 at 2:30:00 PM

A better way to live between high-rise condominiums and landed houses

[MALAYSIA] For decades, the landed home—six bedrooms, a garden, space for three cars—has been the ultimate symbol of success for Malaysian families. Yet...

Real Estate United States
Image Credits: Unsplash
Real EstateMay 26, 2025 at 11:30:00 AM

Selling your condo in a tough market

[UNITED STATES] With the U.S. real estate market in flux, selling a condominium in 2025 has become a strategic challenge for homeowners. Rising...

Housing Singapore
Image Credits: Unsplash
HousingMay 18, 2025 at 6:30:00 AM

Fix water leaks quickly to avoid high costs

[SINGAPORE] Homeowners are being urged to address water leaks swiftly to avoid escalating repair costs and potential structural damage. Delaying repairs can lead...

Real Estate United States
Image Credits: Unsplash
Real EstateMay 17, 2025 at 12:00:00 AM

Homeownership dreams persist among Gen Z and millennials

[UNITED STATES] Homeownership has long been a cornerstone of the American Dream, but for Gen Z and Millennials, achieving this milestone has become...

Real Estate Malaysia
Image Credits: Unsplash
Real EstateMay 11, 2025 at 9:30:00 AM

When inheriting a home goes wrong

[MALAYSIA] Estate planning is essential to ensure your assets, particularly your home, are passed on according to your wishes. However, without careful consideration...

Load More