Can an Income Property Rescue Your Retirement?
August 29, 2017 | Rebecca Lake | U.S. News & World Report
Stocks are soaring but for many investors, real estate is king. Twenty-eight percent of investors say real estate is the best place to invest money they won’t need for the next 10 years, according to Bankrate. Stocks came in third on the list, after cash.
Real estate may attract even more investors when interest rates rise, prompting bond prices to fall. Stocks in sectors that pay significant dividends, such as utilities, may also dip.
The primary appeal of real estate is its low correlation to other asset classes, says Gary Anetsberger, CEO of Millennium Trust Co. in Oak Brook, Illinois. As an income-producing investment, real estate tends to perform differently than fixed-income investments when rates increase. Apart from the 2008 financial crisis, “real estate markets typically do not move in sync with the stock market,” he says.
