Global Real Estate to Be Best Investment in 2016

Forbes recently released an article regarding global real estate and how it might just be the best investment in 2016. Gone are the days of the real estate money pit. While there are most definitely still pros and cons about any investment venture, investor sentiment toward real estate is projected to remain positive, according to Colliers Global Investor Outlook 2016, which was released last Monday.

According to Forbes’ article:

Primary target markets will continue to draw the most interest, with moderating risk appetite, stable economic conditions, and low interest rates driving increased investment in secondary markets. Transactional activity in the first 9 months of 2015 brought in $625 billion of direct property investment worldwide, representing an 11% increase over the same period of 2014, according to Real Capital Analytics. This year is expected to be even more.

“Our report suggests that…long term secure investment in core markets will be the norm,” says John B. Friedrichsen, CFO of Colliers International. “Large volumes of capital already raised will increasingly seek out opportunities in tier-two cities and in recovering markets.”

Now, regardless of what path you take with investment endeavors there are five ways that you can earn a return on on that investment – but the best investment being real estate provides you with all five including:

  • Cash Flow or Rate of Return
  • Federal Tax Benefits
  • Leverage of OPM (Other People’s Money)
  • Principal Paydown
  • Appreciation

The fact that real estate investment will provide you with all five benefits is quite huge as it will provide an income on other people’s money while giving tax breaks and increasing your balance sheet and hedging against inflation. If you’d like to learn more about real estate investing as the best investment for 2016 don’t hesitate to reach out to us at Diverse Real Estate Management. We are here to help answer any questions or concerns you might have.

 

 

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