Balance Stocks With Real Estate for a More Stable Investment

If stock market volatility is keeping you awake at night, you may want to consider adding hard assets to your portfolio. By this we mean income property.

Real Estate as an Investment

Let’s look at an example:

If you purchased a three bedroom property for $130,000.00 and put 20% down on a thirty year mortgage, then your monthly payment including principal, interest, taxes, and insurance could be expected to be about $800.00 a month. Considering that rents in desirable areas of greater Lansing can run between $1200.00 and $1400.00 per month, this can be a very good investment.

In addition to the potential of cash flow from real estate investments, there is also an opportunity to build wealth through price appreciation (or as the price of properties increase from what you purchased them at) and 1031 exchange opportunities down the road.

While the stock market expected to continue to be volatile, many individuals are choosing to move investment dollars into hard assets that can be part of a balanced investment portfolio.