Source: Investment News —
You can hardly browse or tune into the financial news without real estate being presented as an “alternative” investment. And yes, real estate has unique investment characteristics that set it apart from asset classes like stocks and bonds. These characteristics are core to the needs of most advisors and their clients — including steady income, a track record for appreciation, inflation protection and a NAV and performance cycle that’s distinct from the ups and downs of the public markets.
Especially today, as poor returns and volatility roil the bond market, investors and their advisors are seeking out hard, asset-backed fixed-income replacements to fill an income-generating role in their asset allocations. Real estate is an asset class that can meet these needs. It’s not an alternative but a vital piece of the asset allocation puzzle.
Moreover, real estate is too large and central to the global economy, and tied to world history, to be considered alternative. Instead, I think of it as an asset as solid and ubiquitous as the ground under your feet.
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