Category: REITs
Growing Your Wealth Through Real Estate
As an investment, the case for real estate remains a good one. Not only has the sector outperformed the SP 500 over the past 40 years (an average annual return of 9.3% for the NCREIF Property Index versus an 8.7% return for the SP 500), its done so with dramatically less volatility (7.8% compared to 16.4%), according to the S P Dow Indices and NCREIF. Real estate has a low correlation to stocks and bonds. Because its a lagging economic indicator it rises and falls well after the rest of the economy it moves differently than stocks or bonds. Whats more, real estate markets are unique. The factors that can sink home prices in one market can have no bearing on another, although thats not always the case. Although the real estate market has plenty of opportunities for making gains, buying and owning real estate is a lot more complicated than investing in stocks, bonds and mutual funds. Perhaps the biggest difference between a rental property and other investments is the amount of time
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