Add more square footage to your portfolio.
Like any great investment, real estate involves a measure of risk and return. Yet with the right location, exceptional construction, and effective management, real estate properties have the potential to not only offer above average returns, but provide additional benefits as well.
Financial advisors frequently recommend investments like commercial real estate for their affluent, accredited investors who want to increase their returns with acceptable risk. Advisors will typically recommend diversification of 10% to 20% of the high net-worth portfolio into investments that have a low correlation to the stock market.
Some of the benefits of real estate investments may include:
- Greater Portfolio Diversification - Real estate, often counter-cyclical to stock market trends, which allows investors to balance risk in their portfolio.
- Added Protection - When commercial properties include tenants who are diversified across multiple industries, investors are shielded from downturns in any one industry segment.
- Regular Cash Flow - Similar to cash flow characteristics of a bond fund, real estate investment properties typically distribute income in a set schedule and in a timely manner.
- Significant Capital Gain - Much like common stock, real estate investment property held for long-term also has the potential for significant capital gains. Unlike common stock, these real estate investments rarely de-value to zero.
- Inflation Hedge - During times of inflation, real estate usually appreciates in value. Combined with low interest rates, real estate investments have the potential to yield higher results.
For more information, please contact the Private Venture Group at fyi@cavan.net or 480-627-7000.
