Real estate is a popular investment option. In fact, it’s one of the go-to investments for those looking to expand their portfolio beyond stocks and bonds, and for good reason.
It varies from market to market, but in general real estate has historically provided investors with higher returns than the stock market. This is especially true of rental properties, which provide investors with passive, predictable income from rental payments, while the value of the underlying asset continues to appreciate.
Real estate also offers investors the opportunity to diversify their portfolio. Investing in an asset class beyond stocks and bonds creates more stability in a portfolio, even when there’s volatility in the market.