Why Should You Invest in Real Estate?
With attractive risk-adjusted returns, real estate may improve a portfolio's overall balance. When compared to equity and bond markets, real estate is relatively stable. When compared to other standard forms of investment, the return on investment from real estate is also rather appealing. When interest rates on Treasuries are low, this asset class is more attractive than usual because of the yield premium it usually trades. Diversification and Protection Adding real estate to your investment portfolio might help you spread your risk. Real estate generally has a low and even negative correlation with other main asset classes, such that when equities go down, real estate tends to go up. Therefore, investing in real estate can reduce portfolio volatility and increase return on investment per unit of risk. It's best to hedge your bets with as direct a real estate investment as possible: Investment vehicles with a more indirect link to the stock market, such as real estate investme...