Most people invest because they want a better life and future for themselves and their family. But not every investment pans out, not when the profitability and risk factors of investment options had not been analyzed properly.
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Studies have shown that nearly a third of Americans find real estate the best long-term investment alternative, with stock market a distant second at 17 percent. There are numerous reasons real estate investment has proven to be a profitable venture.
Firstly, it is a great shield against inflation, which is a constant occurrence in the free market. Inflation is defined as the “general increase in prices and fall in the purchasing value of money.” With cost of living is always on the rise, having an investment that provides a return that can hedge against inflation is important – which is what real estate can give.
Real estate properties see their value appreciate over time, more so if the asset is well taken care of. By increasing appreciating assets, one’s net worth can see growth over time.
And in a volatile market, investors need stability and diversification of portfolio. Real estate properties have shown to be stable (because it has a low correlation with the stock market), gives long-term gains, and carries limited risk.
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After more than 60 years of experience in real estate and property management, Benderson Development Company Inc. has become one of the largest privately held companies in the country. It owns and manages a diverse real estate portfolio that is comprised of over 700 properties and has a total area of 40 million square feet. Follow this Twitter account for more updates on the real estate industry.
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