WHY REAL ESTATE
Today, people are faced with an overwhelming number of choices when deciding where to invest their hard-earned money. With a myriad of other choices like bonds, stocks, life insurance policies, it is important to understand why investing in commercial real estate can be so beneficial.
While there are several positive financial reasons to include real estate in your investment portfolio, those who invest in real estate generally share a common mindset. They like owning something tangible with their investment dollars. They understand that not only does real estate have its own intrinsic value, but, when well-managed and maintained, it can produce steady and reliable income.
BENEFITS OF INVESTING IN REAL ESTATE
Real estate’s intrinsic value is not usually subject to the frequent trading and volatility sometimes affecting stocks and bonds.
Current and regular lease income can be used to pay dividends.
Real estate can appreciate in value over time.
Protection Against Inflation
Well-managed rents and expenses can shelter some aspects of asset income from long-term inflationary trends.
Depreciation, step-ups in basis, and opportunities for deferral through IRS (1031/721) transactions might provide investors certain tax benefits.