3 Reasons To Invest With A Real Estate Investment Company

9 April 2015
 Categories: , Blog


Are you looking for a way to spruce up your investment portfolio? One way could be to the head to your broker and tell them you want to invest in yet another mutual fund, but adding another fund to the list of 10 you already own stock in isn't really diversifying. If you truly want to diversify, you may want to look outside traditional stock options. One way to potentially accomplish this would be to invest in real estate. Real estate investment companies can provide you a way to invest in real estate without actually having to play landlord yourself. Here are 3 reasons why investing in real estate with a professional company might be a good idea.

Inflation Is Your Friend

One of the downsides of traditional investing is that you always have to account for the annual inflation rate of the economy. That tidy profit you just turned might not be worth as much within the market as it was the year before. But with real estate, properties tend to appreciate in value over time. This isn't always the case, of course, but in general, inflation will cause real estate values to go up over time, which could make it easier for you to turn a profit.

Annual Yields Tend To Pay More

A real estate investor can predict an average yield or profit that they will turn every year based on how much rent the tenant is paying or how much interest is coming in on the mortgage. This can of course fluctuate based on expenses, but in general, a rental yield or annual profit from a real estate investment is going to be a much higher percentage than many other kinds of investments. You also have a great chance of making at least some money as long as the properties are being managed well. Contrast that with a traditional stock where you could lose money when the market tanks.

You Don't Have To Play Landlord

If you go with a real estate investment company for your next investment, you can get some of the benefits of being invested in real estate discussed here but without having to play landlord yourself. Investing in real estate through a company will allow you to get into the market without giving up a lot of time or having to deal with ongoing management.

If you are looking for another way to spice up your investment portfolio, consider going with a real estate investment company. Real estate tends to be a stable investment that appreciates naturally over time, and by going through an investment firm you can get the benefits of real estate investment without actually having to manage a property on your own. For more information, contact a company like Jakob Pek Fund.


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