Benefits of Diversifying Your Investment Portfolio with Real Estate

Diversifying your investment portfolio with real estate is one of the best ways to ensure a stable income. Real estate investment provides many benefits, including financial security and a regular income stream. We’ll explore the benefits of diversifying your investment portfolio with real estate and how it can improve your financial future!

Ryan Kavanaugh investor is a financial advisor and co-founder of ‘Betterment,’ an automated investment service that allows customers to own their investments without the hassle of managing their money! Ryan says the key benefits of diversifying your investment portfolio with real estate include lower risk and higher income.

“Real estate investing provides many benefits to investors, including a stable cash flow, long-term gains, and reduced risks. Real estate portfolios typically generate steady cash flow throughout the year. As inflation rises or economic recessions occur, real estate also increases in value over time.

The average annual return from real estate investing is about 8%, more than five times larger than financial market returns. Real estate investing also allows you to diversify and minimize risk. A mix of real estate and low-risk bonds, for example, can help reduce your overall risk in the market.”

The risks of investing in real estate are lower than financial markets, but they are still present and need to be considered by investors. In order to have a successful real estate portfolio, you must understand these risks to help minimize them.

Large fluctuations in real estate value can occur, causing unexpected losses and possibly even bankruptcy for investors. The housing market crash of 2007 is an example of this phenomenon.

Ryan Kavanaugh profile is a financial advisor and co-founder of ‘Betterment’, an automated investment service that allows customers to own their investments without the hassle of managing their money! Ryan says that buying real estate is like playing a game of poker.

“If a person has bought low, meaning the property has experienced significant price declines, that person would have bought even better. By investing in real estate, you are trying to make money by buying low, managing for steady cash flow, and playing the game of real estate investing like a sport.”

The average annual return from real estate investing is about 8%, which is more than five times larger than financial market returns. Real estate investing also allows you to diversify and minimize risk. A mix of real estate and low-risk bonds, for example, can help reduce your overall risk in the market.