Why is real estate investing so important to an investor or a portfolio? Upside Avenue CEO Yuen Yung talks about how real estate is an important part of any investment portfolio as a diversification tool that helps you weather the ups and downs of the stock market. The key benefits of owning real estate are:
1. It’s a hard asset. It’s a physical piece of land and structure that you actually own, and it won’t fluctuate with the stock market.
2. It provides long-term growth and income.
3. It appreciates in value over time.
4. Portfolios that are well-allocated have some sort of real estate included.
Watch YouTube video:
Yuen: Hi, this is Yuen Yung, CEO of Upside Avenue, a wholly owned subsidiary of Casoro Group, and I’d like to welcome you to our Educational Video Series: REIT Investing 101. Today, I’d like to discuss with you: Why Real Estate? When you talk about real estate, we’re really talking about is usage of land. Why is real estate so important to an investment or portfolio? When you talk to professional investment managers, the first thing you hear is that you need diversification.
Oftentimes what you’ll hear is also that real estate or something like real estate will be a very important piece of your portfolio. When you consider real estate as part of your portfolio, there’s a certain couple of things that real estate brings to the table for you. Number one: keep in mind that real estate isn’t hard asset, it’s not a paper gain, it’s actually physically a piece of land and something that is built so that you actually own, so, it’s a hard asset which will not fluctuate with the stock market itself. In addition, real estate actually provides you both long term growth as well as potential income today. What that means is that if you have a piece of real estate and that you have some sort of housing on it, what that will do, is it will actually generate income for you today.
In addition to that, because real estate, as the old saying goes, we don’t make anymore of it, it actually appreciates. So, overtime, you’ll get appreciation from your real estate investment as well. An additional piece that real estate will bring to the table is also diversification. You’ve heard of stocks and bonds very commonly, but what you find is all portfolios that are well allocated in well diversified, has some sort of real estate in it. What that allow you to do is have different correlations from the stocks and bonds that are out there today.
And, so, what happens is as stocks and bonds or fluctuating, the real estate will fluctuate differently, thus, giving you more stability inside of your portfolio. At Upside Avenue we make real estate investing easy. We give you access to what the uber wealthy have always known without the headaches and the management of actually running the real estate. Check us out at upsideavenue.com and also look us up on social media on Facebook, Twitter and LinkedIn. See where your Upside will take you.
Other helpful Upside Avenue articles
REIT Investing 101: What is a REIT and What are the Benefits of Investing?
Interested in more information about investing in real estate? Read our free ebook, Quick Start Guide to Investing in Real Estate.
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