After the recent volatility we’ve seen in the stock market, many investors are rightfully nervous. It’s natural to wonder if now is the time to make significant changes to your portfolio. While everyone’s personal circumstances are different, there are several compelling reasons why real estate is becoming the preferred "safe haven" for 2015 investors.
Here are three factors that make real estate a unique and powerful investment:
1. You Are in Control
Unlike the stock market, where you have little to no say in how a corporation is managed, real estate puts you in the driver’s seat. As an owner, you have the power to directly impact your bottom line:
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Reduce Expenses: You can find more efficient ways to maintain the property.
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Increase Revenue: You have the authority to raise rents in line with market demand.
2. The Inflation Hedge
In the world of real estate, inflation can actually be your friend. As the general cost of living rises, property values and rental rates typically follow suit. This helps protect the "real value" of your investment in a way that paper assets often can't match during inflationary periods.
3. Exclusive Tax Advantages
Real estate offers tax benefits that simply don't apply to the stock market. From depreciation (which can offset your rental income) to the ability to deduct mortgage interest and property taxes, the "Piece of the Rock" allows you to keep more of what you earn.
The Power of the Tangible
For me, there is an inherent security in an investment I can feel and touch. A stock symbol on a piece of paper can fluctuate wildly in value from hour to hour based on global events. A well-chosen property in a community like ours is a physical asset with intrinsic value.
That’s why, in times of uncertainty, I always want to own "a piece of the rock."
