Most of our readers are savvy investors, and we are sure you have your own mix of assets and investments that have proven successful for you over the years. It can be helpful, however, to periodically review that mix of investments, so we have compiled some recent advice from financial writers about real estate’s value in your overall portfolio. (PointOne Holdings is not a financial services company. This article is intended to be used for informational purposes only and should not be used as official financial advice.)

Real estate vs. stocks

One former Wall Street financial specialist now posts a blog called Financial Samurai. In a recent post, he outlined his reasons for weighing his portfolio more heavily with real estate vs. stocks and CDs (his ideal mix, he said, would be 60 percent real estate, 35 percent stocks and 5 percent CDs). Those reasons included: greater control, tax advantages and ease of quantifying and analyzing it as an asset.

In addition, he called real estate “one of the three pillars for survival; the other two being food and shelter” and he highlighted the benefits of real estate investment in a healthy region.

“If you’ve made a good decision to buy in an economically strong region, you will be more insulated from the national economy or the global economy,” he said.

Paula Pant, a writer for The Motley Fool, also laid out some pros and cons of real estate vs. stocks in a recent article, saying “The important thing isn’t deciding which route is better, but deciding which is better for you.”

Her “pros” in the real estate column include control over the investment, clarity in seeing and understanding a property’s value, monthly income and, in the case of investing with a property manager in place, she highlights the value of a largely hands-off investment. (With PointOne Holdings, your investment can be mostly hands-off because we manage the day-to-day property management, repairs and renovations.)

Mitch Tuchman, a Forbes contributor, recommends real estate as one of “3 Fundamental Investments You Need” because real estate is key to diversification.

Real estate, commodities and other “less-traveled corners of the market are where the money goes when fear runs rampant in the stock and bond markets,” he wrote.

Commercial real estate as a savvy investment

Wells Fargo examined the trend toward commercial real estate investment in a recent blog, quoting Bill Nimmo, senior vice president and national director of real estate asset management for Wells Fargo Wealth Management:

“Real estate today generally provides a current return that may be substantially better than many fixed income investment alternatives. A combination of strong income, appreciation and total return, and the diversification benefit of adding real estate to your portfolio is driving many into real estate investing.”

He cites the benefits of commercial real estate investment as steady income from rents and equity from long-term holdings. He counts residential properties and apartment buildings among some of the least risky investments in commercial real estate.

Nimmo also recommends opting for economically sound regions with positive job growth, but points out that secondary and tertiary markets often have less competition for investors than top-tier markets like New York or San Francisco. (We discussed the job growth and economic health of the Southeast market in a recent newsletter.)

One financial pro’s advice for investing in real estate

Finally, Warren Buffett shared his own real estate investment tips earlier this year, which include:

• Invest in undervalued real estate
• Think income; not appreciation
• Find underutilized properties
• Use partners to make up for your lack of expertise
• Keep in mind the long-term, big-picture view

Not-so-coincidentally, PointOne Holdings tends to follow those rules when identifying properties to add to our portfolio, and we provide the real estate expertise to successfully enhance those properties and fill vacancies to create an attractive return on investment for you.

Thanks for reading our latest newlsetter. If you are interested in learning about PointOne Holdings’ most recent real estate investment opportunities, please do not hesitate to contact us at your convenience.

Sincerely,

PointOne Holdings