Reason 8 - Consistent Returns & Less Volatility Than Stock Market

[Jorge Abreu]

💥Reason 8 on Why the Wealthy Invest in Real Estate!

The long-term performance of commercial / multifamily real estate makes it a compelling asset class for many investors. If I could sum up that performance in two words, it would be consistent performance. 🙌 Consistency is really important. After all, anyone can have a great game, but true greatness comes from consistently high performance over a long period of time.

👉Since the great depression, commercial real estate has had far more up years than down years in comparison to both stocks and bonds. In fact, commercial real estate has three to four times fewer down years than the other two. If you look back even further at the historical performance of the S&P 500 you get a clear picture of the inconsistency of the stock market. In the last 90-years from 1927-2016 the composite index or S&P 500 has had 28 down years. That is one down year every 3.2 years on average.

👉Now there are reasons to invest in the stock market, but it seems that far too many investors throw money at the market like they’re swinging for the fences. Since commercial / multifamily real estate has 3x to 4x fewer down years than the stock market, it too has performed better. That is 3x – 4x more stability that has created more income, more equity, and more wealth for apartment investors.

👀It is that consistency of performance that has more Americans saying that real estate is the best long-term investment and the statistics show it.💥