Thinking outside the box – Alternative real estate



Investment is more important than ever. The American Association of Retirees (AARP) reports that the trust funds that provide retirement and disability benefits to many citizens will be depleted as early as 2035. This means that social security will only be able to pay what it takes through taxes on an annual basis – and where safety in that?

Thus, many American citizens are turning to personal investment to ensure a better financial life after retirement. With the advent of robotic advisors, this quest is done easier and more affordable than ever… Robo consultants, while good in some respects, tend to facilitate the purchase of common stock or mutual funds. Real estate is one of the best for the long term. investment options – are usually forgotten.

The problem with real estate investment, at least in our estimation, is a distorted perception. “Real estate” – the phrase itself conjures up images and situations that a cool investor might have avoided: hassle buying and selling housesby being a homeowner or renting out a room. But the fact is, real estate investing can be the same passive like everything else.

Some robo consultants offer options for investing in real estate investment funds (REITs). Others like M1 Finance, support real estate investment by opening ETF users to bond and real estate investments.

However, there are more specific ways for the individual investor to passively participate in real estate. Investment platforms like AcreTrader and CrowdStreet, both crowdfunding ventures, give the impression that connected and are engaged in commercial real estate in which they invest. Working as robo-consultants, these services specialize in fair real estate investments.

Pension and real estate – what gives?

There are many benefits to investing in real estate. Predictable cash flows, moderate returns, tax advantages, and perhaps most importantly, portfolio diversification are often cited.

Let’s consider “predictable cash flow” – while real estate does not have the exciting boom or bust profile of an asset like cryptocurrency, it is ideal for a long-term portfolio built for retirement. Real estate cash flow is based on rents, property appreciation and profits from businesses that lease land or premises.

Shorter property less abstract than the choice of stocks, the value of the latter depends on the world market, which reacts not to rhyme or reason (presumably), but to a kind of abstract sentiment.

Investing – Impact Considered

There is a lot of talk about “ethical investing” these days, and with good reason. Rather than focusing on bottom line, bottom line, investors are filtering their choices through personal environmental ethics more than ever before.

And investing in real estate can correspond to just such a progressive approach. For example, AcreTrader improves agriculture by introducing innovative farming practices, improving existing technologies on the farms with which they are associated, and deepening the commitment to sustainability. By investing in agricultural land through AcreTrader, a person is directly investing in the future welfare of the land.

Likewise, platforms like CrowdStreet are doing their part by democratizing real estate. By helping investors diversify beyond public equity, these services are helping to shift power from Wall Street to individuals.


Source link