First, real estate is a hard (“real”) asset, which makes it more resilient during a recessionary period. Second, it serves one of the world’s most basic needs by providing shelter. Third, the tax advantages associated with real estate are unreal. You can write off mortgage interest, depreciation, and frequently, defer capital gains taxes (taxes on your profits) by using either a Home Sale Tax Exclusion or a 1031 Exchange.
Most importantly, when and if real estate prices drop dramatically, it could be an incredible time in history to pick up properties at discounted prices.
For these reasons, you might consider whether it might make sense to diversify into the real estate sector.
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