Although all investments are affected by inflation , real estate is always a good hedge against inflation ... real estate is a natural inflation hedge since it has no link with equities or corporate profits . Plus , any inflation costs are frequently passed on to tenants . lesser earnings . In contrast , real estate is a natural inflation hedge since it has no link with equities or corporate profits . Plus , any inflation costs are frequently passed on to tenants .
6 . Conclusion .
3 . Equity
The difference between the current market value of your properly and the balance of any mortgages encumbering your property is called “ equity .” The more equity you have the better . When you invest in real estate , your property ’ s equity grows over time in two ways . First , as you pay down your mortgages every month , your equity increases . Second , as the value of your property appreciates over time in the marketplace , your equity increases .
4 . Diversification
Diversification is an important strategy to mitigate risk , particularly if you ' re putting a lot of money into various investments . Most experts advise diversifying your portfolio so that you don ' t lose everything in one fell swoop if the market in which you ' ve invested suddenly goes downhill . Real estate is a great asset to put your money — and it ' s a lot safer and more stable than a lot of other options , like stocks or bonds .
5 . Inflation Hedge
Today , we are dealing with inflation . Although all investments are affected by inflation , real estate is always a good hedge against inflation . Creating products and services is typically more expensive due to normal inflation . They must either increase pricing or accept
If you ’ re still on the fence about real estate investing , hopefully I ’ ve given you a few compelling reasons why investing should be a wise decision for you . Keep in mind , as with any investment , there is always some risk involved . However , if you want to take advantage of all that real estate has to offer , you should be investing now . Remember , don ’ t wait to buy real estate — buy real estate and wait .
MEET LLOYD SEGAL
After practicing law for over 30 years ( specializing in real estate litigation ), Lloyd Segal assumed the leadership of the Los Angeles County Real Estate Investors Association in 2017 from the late Phyllis Rockower . Lloyd is an author , real estate investor , mentor , public speaker , and landlord . He is also the author of four real estate reference books , including “ Stop Foreclosure in California ” ( Nolo Press ), “ Stop Foreclosure Now ” ( American Management Association ), “ Foreclosure Investing ” ( Regency Books ), and “ Flipping Houses ” ( Regency Books ). The Los Angeles County Real Estate Investors Association is the oldest ( 1996 ) and largest investor group in California . In his role as President , Lloyd is busy expanding LACREIA ’ s events and programs for members and real estate investors . For more information , visit www . LARealEstateInvestors . com
82