Is Real Estate a Worthwhile Investment?

Owning just one home is a common part of the American dream. Ever since the housing market crashed in recent years, however, there have been questions raised about whether or not it’s beneficial to own a home or invest in other types of real estate.

If you ask anyone about investment advice, one of the first things you’re likely to hear is all about the benefits of diversifying your portfolio. An easy and exciting way to do this is with real estate, even if you’ve never had the opportunity to do it before. Thankfully, learning about this industry and jumping in with both feet can allow you to capitalize on this amazing chance.

It’s important to think of your home and other properties as an asset rather than an investment. Many people who purchased homes as long ago as 30 years past may have been happy to see their equity grow over time. But others might have bought at the high point in the market and then lost everything when the recession occurred.

Working with someone who understands the real estate market is strongly recommended. You can also shadow an agent for a day to learn more about trends in your area and the types of properties that you can invest in. Agencies like Chance Realty specialize in working with investors to find properties that are suitable for their portfolio. So make sure to find a local agency that does the same. When you’re getting started, educating yourself with the help of a pro can be extremely beneficial and most people are willing to provide you with some insight based on their individual experience. Speaking to other investors is also one way to learn about the different ways to invest and to determine what is best for you. If you’re thinking about diversifying your portfolio and adding real estate to the mix, this can be a wise decision regardless of current market conditions. If you can select the right properties and areas, real estate has the potential to serve you for many years to come.

Until you sell your primary residence for this reason, you don’t know what kind of return you may see. You should always consider at least your primary residence as an asset. An investment, however, is actually designed to create a rate of return based on your individual objectives and goals. There are also multiple locations that you can invest in inside real estate itself. Given the current market conditions you may want to consider those that are less affected by economic condition fluctuations.

These are apartments, triple net real estate and senior housing. Investments in real estate can be very advantageous for your future and for returns on investments but you need to think carefully about the most appropriate way to do this. Using a real estate investment trust may allow you to get in and out of these agreements instantaneously. Bear in mind though that even though you get the benefit of owning equity in real estate, it may fluctuate with the stock markets so you won’t receive any non-correlated returns or true diversification. The benefit, however, is the instant liquidity.

Categories: Real Estate

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October 12, 2016 Is Real Estate a Worthwhile Investment?