Is It Worth Building a Real Estate Portfolio?
As property prices continue to drop, more people are going for real estate investments as an addition to their portfolio. An article published on FoxBussiness.com cited that there’s money in property, but it involves risks, especially for new investors. The necessary experience and education are important, as these key factors will serve as a guide to build the right property portfolio.
Why Real Estate Is a Good Choice
According to Theresa Bradley-Banta, founder and CEO of a leading consultancy firm and author of Invest in Apartment Buildings: Profit without the Pitfalls, real estate is a safe, sound, and solid investment. Regardless of the recent housing crisis, real estate values increase constantly after a specific period. It could provide rental income, tax benefits, and incentives to property owners in the future.
Research analysts, Morgan Stanley (NYSE: MS), revealed that about 77% of US millionaires see real estate as the leading alternative investment. Residential and commercial property direct ownerships even ranked first this 2014, according to Bloomberg.com. The remaining 23% doesn’t fall behind either, as they’re planning to invest in real estate investment trusts.
Why Include Real Estate in Portfolio Interest rates are unstable and stocks are becoming more costly. It’s normal for investors to look for alternatives that will provide better returns and income. President and CEO of Investor Solutions, Frank Armstrong, noted that real estate should be part of an investment portfolio. Even though it isn’t immune to market changes, it doesn’t cause any significant threat. Its connection to the stock market is minimal, which means that it could reduce risks and improve portfolio returns properly.
Establishing a strong portfolio doesn’t happen overnight. It takes the right long-term investments to build true wealth. With the help of real estate, however, new and old investors could create a path that will soon bring them good results.
Sources: http://www.forbes.com/sites/zillow/2013/05/21/three-things-that-make-agreat-real-estate-investment/ http://www.entrepreneur.com/article/228506 http://www.birminghamincomeproperty.com/properties/