Investing in Real Estate

For the past decade, the real estate market has been experiencing some fluctuations. For years, it’s gone back-and-forth as being regarded as a safe investment. Now as we’re entering the end of 2015, investing in real estate is once again a relatively safe choice.

While most investors are still experiencing feelings of unease after the 2008 market crash, investment portfolios are once again being diversified with real estate investments since 2013. Some are even saying investing in real estate is safer than investing in gold.

And why would’t they? Real estate investments tend to have an excellent long-term yield in addition to being a great hedge against inflation. The trend to invest locally is popping up, as discussed on the Blue Rock Real Estate website. The driving force behind the trend, according to Richard Spillane of Spillane Money Management, is that investors buy properties in familiar neighborhoods partly for the income and partly for the diversification. The attraction to the properties is that investors can actually “get their arms around” them.

While there are still a few investors ready and willing to invest in properties that are miles, states, and oceans away, Elke Mariotti, a CFP and an agent with Signature Premier Properties in Huntington, N.Y., said the appeal to investing locally is in its simplicity.

In today’s market, real estate investing is more about capital preservation, as there is little impact on commercial real estate yields due to the spread between cap rates and interest rates remaining so great. U.S. real estate is a fully-priced market, and investors know it.

In the last year, Chinese investors have surged nearly $6 billion in United States commercial real estate properties, $4.5 billion of which went directly to properties in Manhattan. Foreign capital is beginning to look at secondary markets as lucrative, and are clearly taking advantage of it.

To learn more, visit Jerold Novack’s asset management blog here!

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Give as Much as You Get

When you think of Bill Gates, what comes to mind? Microsoft? Billionaire? Genius? Philanthropist? Real estate investor?

Wait, real estate investor?! It’s little known that only a quarter of Gates’ net worth actually comes from Microsoft. The rest is made up of wise investments made over the years, a majority of which lie in the real estate industry.

And while the world’s richest man’s value currently lies at $79.2 billion, he remains one of the most notable philanthropists of our time. Indeed, in 2008, Gates left his position at Microsoft to focus primarily on philanthropy. Throughout his philanthropic career, Gates has donated over $28 billion to making a positive impact on this planet and its people. He’s even gone so far to say:

“Giving back is better than getting.”

In fact, he attributes his success to it. In a 2014 TEDtalk, Gates and his wife, Melinda share the moment they decided to give most of their wealth away, the work they do at the Bill & Melinda Gates Foundation, where they both serve as co-chair, as well as their failures and successes with a few personal anecdotes.

Gates has proven that, for real estate investors, keeping a diverse portfolio will bring you profit, which in protecting your wealth, you should give as much as you can, for purposes that matter and will have a positive impact.

To learn more, visit Jerold Novack’s philanthropy blog here!