Best Real Estate Investment

When times are hard, most people try to save money in any way possible. And when buying a home, who wouldn't want to save an extra 3 percent, which is an extra $3,000 for every $100,000 the house costs? Most real estate deals pay buyer's agents that much, and most experts agree it's well-spent money. Anyone can look for a house and even go inside without working with a real estate agent. But if you don't have time to look for a home part-time, an agent might be able to help you find the right one much faster. Say you want a swimming pool. Or maybe you want a yard with a fence for the dog or a playroom for the kids in the basement. A real estate agent's job is to know if a house out there fits your needs, and they will also hold your hand through the deal. Here are some of the best reasons to use an agent when buying a home. Ethical Consideration National Association of Realtors (NAR) members agree to follow a code of ethics. However, not all real estate agents are m...

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...