Serious investors already know the value of a diversified portfolio. In addition to stocks and bonds, real estate should be included in your investment mix. One way to accomplish this is to purchase, hold, rent or flip actual physical property, as part of your investment strategy. Real estate is a solid asset which can provide annual income, asset appreciation and/or quick profit.
Millionaires understand the value of real estate and how it can be used to increase wealth and as a hedge against the volatility of other investments, such as stocks and bonds. Real estate holdings can provide immediate and long-term benefits:
- Cash Flow – Rental income is one of the primary reasons investors purchase property.
- Asset Appreciation – Property value appreciation is another advantage of investmentproperty. While rents pay the mortgage and ownership costs, property values are on the
rise, increasing the asset worth.
- Fast Capital – Buy and flip properties are a great way to quickly add capital to yourportfolio.
Those who understand wealth-building strategies know the value of real estate as a part of a balanced investment portfolio. Along with short-term opportunities, real estate can offer an asset with cash flow and appreciation, unlike the volatile stock and bond markets.