Real estate investments have always been used as part of a long-term core strategy due to increased market efficiency and known for the ability to serve as a portfolio diversifier and inflation hedge.
The continued increase in real estate market efficiency, as demonstrated by the continual offerings of new real estate investment products and global investment opportunities, provides greater motive for including real estate in one's overall capital allocation. In addition to the potential risk/return superiority of traditional real estate alternatives, the emergence of investments, such as real estate derivatives and 1031 tax-deferred exchanges helps investors craft specific, potentially high-performing, tax-efficient and diversified investment portfolios.
What return expectations should investors have and what risks will they inevitably encounter? An investor considering the use of real estate as part of a long-term investment strategy should understand how to evaluate these investments in relation to more conventional investment options. We'll show you how it's done.