Real estate investment is considered to be the perfect hedge against inflation, unlike other asset types, real estate rarely earns negative annual returns. Risks do exist, but insured property will never incur a complete loss of value. David Lereah, chief economist as the National Association of Realtors states: "In the past investors bought gold as a hedge against inflation now they buy real estate. It achieves high returns with reasonable risks compared to other assets." While some owners prefer to operate and manage their own properties, other pay a management company and only know when to expect their check in the mail. Tax laws allow write-offs for depreciation and expenses, protecting income from FICA taxes, and deferment of capital gain taxes. Additionally, real estate is a broad asset class, allowing investors to select properties suitable to his/her needs, from apartment complexes, to hi-rises, to retail buildings to self-storage. Real estate deserves a place in every investor's portfolio. Real estate investment is vital to capital appreciation and investor return. To find out how real estate can work for you contact me for a private consultation.
Eric P. Gilberti, Associate Broker
egilberti@nolacommercial.com
RE/MAX Commercial Brokers, Inc.
No comments:
Post a Comment