Why real estate?
Real estate has always been the most powerful type
of investment
for building wealth.
Every client is different and comes from a different background.
Some clients have existing portfolios and they are looking for a company to manage not only the property with regard to tenants and maintenance) but also the asset (how do they maximize the value of their portfolio - when to buy, sell, 1031 exchange).
Other clients are high net worth individuals
requiring a specialist company to diverge their own investment
portfolios into real estate.
Newer clients, who do not have a real estate portfolio but
see the benefits of developing one, use the services of PDS to maximize what their level of investment will acquire them. Baby Boomers facing
retirement are in the potentially unique position of having equity in their homes and retirement funds which can possibly be utilized to acquire real estate for cash flow.
As far as we at PDS are concerned, real estate investment
is, and always has been, the most powerful type of investment
for building wealth. Nine reasons why real estate is a good investment:
- Real Estate is a good hedge against the possibility of
re-emerging inflation in the global economy
- Rental properties offer a stable source of income
- Real estate always has residual value; prices will never
fall to zero, unlike shares and hedge funds
- Real Estate is a hybrid asset - it has the capital appreciation
of a stock but the income producing capacity of a bond
- Investors typically have more control over the nature,
timing, and size of real estate investments
- Real estate is an excellent collateral security against
loans
- Real Estate portfolios offer great scope for diversification
of risk into different property types, locations, and rental
levels - minimize interruption to income flow
- Can invest in different US and international markets
to reduce any individual risk
- The reason real estate is such a powerful way to build
wealth is due to one key concept: leverage.
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