You have options when evaluating where to put your money. You’ve undoubtedly spent lots of time with your financial planner over the years reviewing where you’ve been compared to where you Real Estate Investingwant to ultimately be. But if you’re listening solely to your financial planner or adviser, you may not be getting the whole story. You may not be considering investing in real estate when it’s time to take a look. Why should you consider placing some of your funds in real estate? Here are five good reasons.

 

1: The first is simply the fact you know what it is. You don’t need to research corporate earnings and balance sheets before making an investment move. With real estate, you work with your agent to find a stabilized property in an established neighborhood that will provide a monthly cash flow to you each month.

2: Real estate is something you can literally touch and feel. It’s a tangible asset compared to a stock or a mutual fund which represents your partial ownership in a corporation that must perform each quarter to keep the company growing.

3: Compared to investing in stocks, with proper due diligence you know what you’re buying. There have been too many fraudulent corporate transactions and it’s difficult to perform the necessary research on not just the company’s profits but the management and board that runs the firm.

4: You can use debt to leverage real estate, borrowing funds at a low cost while simultaneously watching your asset increase in value and provide a monthly return. The only comparison with stocks would be trading on margin, hoping your guess is the right one.

5: Historically, real estate has been an excellent hedge against inflation, protecting against losses based upon a devalued dollar.

There are other reasons why real estate should be a part of your retirement portfolio, so the next time you’re speaking with your financial adviser, review these five points and see the reaction. It’s very hard to argue with them.