Why Invest in Real Estate?
The decision to purchase real estate purely for investment purposes requires a number of considerations. We consider it our job to make sure our clients are fully informed before making the buying decision.
Real estate can enhance the risk and return profile of your portfolio, offering competitive returns.
Even taking into consideration the mortgage crisis several years ago, real estate investors returned an average of 8.4% over the 10-year period from 2000 to 2010, based on data from the National Council of Real Estate Investment Fiduciaries (NCREIF). And usually the real estate market is one of low volatility especially compared to stocks and bonds.
Diversification and Protection
Another benefit is its diversification potential. Real estate has a low, and in some cases, negative, correlation with other major asset classes – meaning, when stocks are down, real estate is often up. In fact, In 14 of the 15 previous good stock market periods, going back to 1956, residential real estate prices rose, according to data from Yale University’s Robert Shiller, the co-creator of the Case-Shiller Home-Price Index. Of course, there are exceptions as there are in any investment class.
But we believe the addition of real estate to a portfolio can lower its volatility and provide a higher return per unit of risk for the right investor. The more direct the real estate investment, the better the hedge. Meaning owning the property directly as opposed to REITs or other real estate securities can lower the risk more substantially.
And you can’t ignore that it is backed by actual brick and mortar, so real estate offers even more stable risk/reward scenario.
Put Your Investment to Work for You
Our business is to provide our clients with management solutions that help their properties operate smoothly, increase in desirability and enhance investment value.
That’s why property owners throughout Tampa Bay depend on us to help achieve their goals of property performance and profitability. Whether your investments are single family homes, duplexes, condos, townhomes, or apartment units, Property Track ensures that your property is well managed to attract and retain tenants.