Real estate: Essential component of complete asset portfolio
15 May 2023
2 Min Read
CW Team
Real estate can be an essential component of a complete asset portfolio, providing
diversification, stability, and potential for long-term growth. Real estate investments
can be made in various forms, including direct ownership of property, investment in
real estate funds, and real estate investment trusts (REITs).
One of the primary advantages of real estate investment is the potential for
appreciation in value over time. Historically, real estate values have tended to
increase over the long term, although there can be fluctuations in the short term.
Additionally, real estate can provide a stable source of income through rental
payments, which can help balance out a portfolio that includes more volatile
investments like stocks.
Another advantage of real estate is its potential for diversification. Real estate
investments can be made in a variety of asset classes, such as residential,
commercial, industrial, and retail properties, as well as in different geographic
locations. This can help reduce the overall risk of a portfolio by spreading
investments across different sectors and markets.
However, real estate investments also come with their own set of risks and
challenges. Property values can be impacted by factors such as economic
conditions, interest rates, and changes in zoning or land-use regulations.
Additionally, property management can be time-consuming and require specialised
knowledge and skills.
Overall, real estate can be an important component of a well-diversified investment
portfolio, providing potential for appreciation, stable income, and diversification.
However, it's essential to carefully consider the risks and challenges before making
any investment decisions.
ABOUT THE AUTHOR:
Dharmesh Shah is CEO of Hero Realty, the real estate arm of Hero Enterprise. Hero
Realty developed approximately 150 acres of residential townships in Haridwar
along with 230 acres of industrial parks in Haridwar itself. Also developing around 6
million sq. ft. in Ludhiana, Mohali and Gurugram, under the brand name � Hero
ÑDz©ÌåÓý¹ÙÍøÊ×Ò³s.
Real estate can be an essential component of a complete asset portfolio, providing
diversification, stability, and potential for long-term growth. Real estate investments
can be made in various forms, including direct ownership of property, investment in
real estate funds, and real estate investment trusts (REITs).
One of the primary advantages of real estate investment is the potential for
appreciation in value over time. Historically, real estate values have tended to
increase over the long term, although there can be fluctuations in the short term.
Additionally, real estate can provide a stable source of income through rental
payments, which can help balance out a portfolio that includes more volatile
investments like stocks.
Another advantage of real estate is its potential for diversification. Real estate
investments can be made in a variety of asset classes, such as residential,
commercial, industrial, and retail properties, as well as in different geographic
locations. This can help reduce the overall risk of a portfolio by spreading
investments across different sectors and markets.
However, real estate investments also come with their own set of risks and
challenges. Property values can be impacted by factors such as economic
conditions, interest rates, and changes in zoning or land-use regulations.
Additionally, property management can be time-consuming and require specialised
knowledge and skills.
Overall, real estate can be an important component of a well-diversified investment
portfolio, providing potential for appreciation, stable income, and diversification.
However, it's essential to carefully consider the risks and challenges before making
any investment decisions.
ABOUT THE AUTHOR:
Dharmesh Shah is CEO of Hero Realty, the real estate arm of Hero Enterprise. Hero
Realty developed approximately 150 acres of residential townships in Haridwar
along with 230 acres of industrial parks in Haridwar itself. Also developing around 6
million sq. ft. in Ludhiana, Mohali and Gurugram, under the brand name � Hero
ÑDz©ÌåÓý¹ÙÍøÊ×Ò³s.
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