The real estate market in the United States is rebounding and gaining more traction as an alternative asset class worth investing in. With commercial property values in the United States seeing an increase of up to 8% till Jan 31 this year, the index of home prices in 20 cities is also up by 24% according to S&P/Case Shiller.
According to Bloomberg, interest rates are expected to stay stable or even decline in the next few years. This will make real estate investments more tempting for several investors. Tiger 21 investors, who have at least $10 million in investable assets, increased their allocation for real estate to 21% in early 2014.
According to Jeff Adams, a real estate speaker with more than 17 years of experience, real estate is the best means of investment to become financially successful in the long term. Adams, who has bought and sold more than 500 single family homes and also holds talks around the country, says that substantial profits can be earned in the short term as well by careful selection of properties. Below, Jeff explains why you should be investing in real estate today.
A Diverse Investment Portfolio
The most important reason to invest in a market that is recovering is that investment into Real Estate Investment Trusts (REIT) can be a great way for you to diversify your portfolio.
A REIT is a company that owns and in many cases operates income producing real estate. These REIT’s can be listed on public stock exchanges for you to invest in. REITs offer investors a way to get the benefits of renting out a house without the hassles of having to maintain the property or deal with irritating tenants.
High Asset Value
According to Jeff Adams, the #1 real estate trainer, when you invest your hard earned money in real estate, there is always a brick and mortar proof of your investment waiting for you as compared to invisible stocks and bonds which might just be pieces of paper at the most. You can be assured of a minimum level of profits instead of being at the risk of losing it all by investing in stocks.
Less Volatile
The real estate asset class trades at a yield premium to US treasuries and becomes more attractive when the treasury rates are low. Also, a large portion of the total return from rental income is spread over a long term which helps reduce volatility than investments which rely on capital value return. As an investor, you have the freedom to consider both options and make your choice.
Simple to Understand
An asset class which is very simple to understand, real estate can offer investors competitive returns which have been adjusted for risk. This is combined with high asset value and attractive long term income which makes investments in real estate a must have for those looking to earn money.
For more information about why investing in real estate is the best plan for you to implement, contact our office today and ask about Jeff Adams products and Mentoring Programs that can help you become financially successful in this new year 2015.
