The stock market may be fluctuating daily, but research shows that in the long run real estate is stable choice to add to your portfolio.
Data from National Real Estate Investor shows that real estate investment trusts are not very highly correlated to other asset classes. Thus, the wild swings in the stock market are not realized in such dramatic fashion in private real estate holdings. According to the article Is Real Estate a Good Diversifier?, there was been a 173% recovery in national Real Estate Investment Trusts from February 2009 to May 2011, signifying potential for even greater recovery in the market.
Private real estate has shown relatively low volatility, and has achieved among the highest risk-adjusted returns among the major asset classes over the past three decades (1978-2010). That means that for each unit of risk, it is estimated that private real estate has provided higher returns than stocks and public real estate, and has matched the bond index.
Real estate values are highly specific to each investor’s account, varying a great deal depending on the characteristics of each asset. Grisanti Group’s broad listing portfolio and connections throughout Kentucky and Southern Indiana allow us to assist our clients in customizing their holdings. Our extensive resources, such as access to demographics, traffic counts, and sales comparisons, will provide you with all of the information to select properties that are recession proof. We have the expertise to make sense out of your dollars and dollars out of your cents.