Should you invest in real estate in 2022 as a new investor?

The goal of any investment is to return more money to it than you invest in it in terms of time and money. However, in this high inflationary environment, your investments need to perform more than ever so that you don’t back down.

With an overall inflation rate above 8% – and some say it’s actually higher than that because not all essential living expenses are factored into that figure – it’s essential that your choices of investment perform better than ever.

What are the investment alternatives?

Suppose we accept that our goal for any investment is to perform well and beat inflation. In this case, we must consider all available options to maximize our returns on investment.

1. Wage growth in 2022: If we look at our time as an investment, then we must include wage growth in the analysis of investment alternatives to real estate. According to US Bureau of Labor Statistics since September 13, 2022, real average hourly earnings have decreased by 2.8% seasonally adjusted, from August 2021 to August 2022. Did you get a 9% wage increase this year? If so, good for you.

2. Stock market performance in 2022: Year-to-date, the S&P’s total return is down 17.12% according to MarketWatch. Add to that the loss of purchasing power with inflation, and you’re down 30% in 2022. You can choose your favorite measure of market performance. They are all down the same way.