A quick review of why we buy Real EstateWith all the fear
in the Real Estate market, it seems to this real estate professional that
many people have forgotten why we buy real estate. Setting aside for now
the increased cash flow, tax benefits, and many other benefits not seen on
the surface; Buying real estate is not only a precondition to having a
balanced portfolio (most experts agree between 10%-20% is a good idea) but
it can also be a rewarding long-term investment. More at
http://www.res-realty.com Remember that, relative to the investments
universe as a whole, real estate swings are less dramatic and further
hedged by the principle of leverage. Simple put, you can control and there
by gain long term appreciation on an asset with only about 10% equity.
Further more, despite the cyclical nature of all investments, house values
in Atlanta have been on a steady move up, will very little regression, and
only in isolated real estate markets.Example:So a $200,000 portfolio that
seeks to balance itself with 20% real estate (.20x200,000)= $40,000 to
invest in real estate.The $ 40,000 can now acquire ~$400,000 in real
estate. Now the portfolio will have $160,000 in stocks and bonds, etc and
$400,000 in real estate, for a diversified asset value of $560,000 set to
appreciate. The bottom line is that if you believe in "buy low, sell
high", you may want to consider calling your agent today to add real
estate in your portfolio and diversify today.