• Hedging Against Inflation

  Investing in multifamily real estate assets can provide a powerful hedge against inflation. Rising costs in home ownership typically lead to more people renting, and increases in rent for multifamily assets can provide increased cash flow without adding to overall costs. Historically, the real estate market has also tended to be a significantly better investment option than the stock market during periods of higher inflation. As inflation rises, real estate values also typically rise, making the asset class a worthy addition to your portfolio.

• Balancing Market Volatility

  Publicly traded stocks and bonds are subject to dramatic short-term swings, from extreme highs to extreme lows, in response to everything from international news to political events. These swings make investing in stock markets highly volatile . Because the real estate market moves at a considerably slower pace than the public markets, it’s less likely to experience dramatic changes over time. By adding real estate to your portfolio, you can help mitigate some of the risk you’ve assumed with stock, bond, and mutual fund investments.

• Long-Term Investment Solution

  Whether you’re planning for retirement or you want to build on the wealth you already have, real estate offers a smart long-term investment solution. Historically, the multifamily real estate market has been shown to outperform other asset classes. This makes it an excellent option for long-term investing. Unlike stocks that are bought and sold in a single day and other short-term investments, real estate investing offers a commitment to building wealth over time.

• Tax Benefits

  Investing in the real estate market provides opportunities to realize tax benefits on your investments, including pass-through deductions. By reducing your taxable income, your real estate investments can help your money go further. As with any financial decision, it’s important to consult with a tax professional.

Reach out to Freedom Capital Partners to explore how real estate investing can enhance your strategy.