Joe Capote – Certified Investment Agent Specialist Expert in Real Estate Investments and Properties

Traditionally, Americans have chosen to deal in the stock market for investment income and retirement savings. However, real estate provides comparable rates of return, more cash flow, and better tax incentives than stocks. In the past 40 years, the yearly amount of home purchases more than doubled, and the median price for existing homes rose from $23,000 to $172,000, appreciating annually at an average rate of 5.32%.

In addition to possible appreciation, investors in real estate benefit from regular cash flow through leasing, greater ability to leverage investments for increased returns, and tax benefits unique to real estate, such as depreciation, expense deductions and 1031 tax deferred exchanges.

Real estate as an investment has always been relatively stable over time in comparison to other investments, and has weathered the economic crisis better than statistically riskier investments in the stock market. The worst yearly return for the S&P 500 was -37% in 2008. By comparison, the most precipitous drop in median home prices was -9.5% from 2008 to 2009.

Over the long run, real estate might appreciate at a lower rate that some stocks, but mostly because of its relative illiquidity, real estate as an investment is subject to less volatility than the stock market. For those seeking stability in the performance of investments and cash flow, knowing the value of real estate as an investment is crucial.

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Regards,

Joe Capote

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