Holding a variety of assets is an important part of investing. After all, the more diverse your portfolio is, the more resistant it will be to sudden shocks to certain segments of the market. While you might maintain a healthy balance of stocks, cash savings, and government bonds, the experts at Coldwell Banker, with locations in Nekoosa and Wisconsin Rapids, recommend adding real estate investing to your portfolio.
Real estate has some impressive advantages to investors of every level, including:
- True Diversification: In general, home values and market activity don't really correlate to stock market performance. This makes it not only a potentially lucrative investment vehicle but one that's also immune from investor panic and sudden market shifts. Real estate markets are also regional and are often resistant to national trends.
- Protection Against Inflation: Real estate investing allows for multiple revenue streams. For example, renting out a property generates monthly or quarterly income, while the value of the asset itself grows over time. The monthly revenue stream allows investors to outpace inflation, since inflationary periods allow for higher rent prices, even if the value of the property itself hasn't increased dramatically.
- Reduced Risk: While real estate investing may not offer the spectacular gains some other vehicles enjoy, you're also insulated against some of the sudden swings and major losses to which the stock market is prone. In general, real estate values are much less volatile, meaning investors will rarely lose everything.
Whether you're an experienced investor or are just buying your first rental property, you can rely on Coldwell Banker to help you find properties with maximum growth potential in upward-trending areas. Visit their website to see a selection of properties for sale today, or call (715) 424-4800 to discuss your real estate investing prospects with a member of their team today.