As the economy continues to stumble along amid various and often conflicting reports about improving conditions and major indices, investors continue to seek investments that provide attractive, risk adjusted yields.
Why Real Estate?
The stock market continues to cause unrest among many private investors, and money markets provide a return that is not particularly attractive. Where can an individual turn to invest in something tangible and quantifiable? A compelling case can be made that it is an opportune time for investors to once again consider real estate as part of diversified investment portfolio. Real estate has long been considered a hedge against inflation, as well as providing the opportunity to generate current income and the potential for increased value over time. Real estate historically has a low correlation to stocks and bonds, and over time, especially for the small investor without several millions of dollars to invest, has provided attractive returns.
With interest rates near historic lows, and without serious threat that rates will increase in the immediate future, the use of prudent leverage can further increase the potential returns to an investor. The prudent use of leverage is critical. While money was flowing freely during the height of the most recent go-go growth period prior to 2008, many took advantage of the availability of cheap debt, stacking on as much debt as possible (and what the lenders were willingly offering), believing continued rent growth would cover any increase in operating expenses and refinancing costs. We have all witnessed firsthand how that story played out.
Where to Invest
There are many different options for investing in real estate today- through the direct ownership of property, through the public real estate companies (REITs), public non-traded REITs, private syndications, or through a number of operating entities and vehicles. There are attractive opportunities available in the current environment, an investor needs to proceed cautiously, and utilize the knowledge and expertise of real estate professionals to assist in the identification, analysis, and structuring of these types of investments, as well as careful review and perspective provided by certified financial professionals and experienced legal counsel.
Prudential Verani Realty provides investors with an experienced team of professionals dedicated to putting the needs of the client above all else. We provide strategic advice & execution to solve complex leasing, development, investment, management, and operational challenges for property owners throughout New England, as we have done for more than 40 years.
We welcome the opportunity to speak with you to discuss how we can assist you with your real estate investments. Please call us at 603-845-2500, or visit our website at www.veranicommercial.com
photo courtesy of 401(K) 2012
Source: http://blog.verani.com/real-estate-investing/
2012 nfl draft order mohamed sanu chris polk chicago bulls st louis blues rueben randle mike trout
No comments:
Post a Comment