At Sage Capital we pride ourselves in putting our money where our mouth is. If we were strictly a third-party brokerage company, and did not have any of our own capital invested in Real Estate what would this say about our thoughts on this asset class? Our core belief in Real Estate as one of the best asset classes is what drives our continued investing in real estate. While not the most sexy or fast money asset class, it is one that will be there in the morning and one done right will pay for itself time and time again, along with numerous other benefits including depreciation, hedging against market inflation, as well as many other benefits.
Sage Capital would love to talk with you regarding our many different opportunities to invest alongside our company in real estate. Whether you are a seasoned real estate investor or simply looking at diversifying your portfolio we can help educate you on the market and discuss if investing with us would be a fit.
Why Invest in Real Estate?
Real estate can enhance the risk-and-return profile of an investor’s portfolio, offering competitive risk adjusted returns. In general, the real estate market is one of low volatility, especially compared to equities and bonds.
Real estate is also attractive when compared with more-traditional sources of income return. This asset class typically trades at a yield premium to U.S. Treasuries and is especially attractive in an environment where Treasury rates are low.
Diversification and Protection
Another benefit in investing in real estate is its diversification potential. Real estate has a low and, in some cases, negative, correlation with other major asset classes—meaning, when stocks are down, real estate is often up. This means the addition of real estate to a portfolio can lower its volatility and provide a higher return per unit of risk. The more direct the real estate investment, the better the hedge: Less direct, publicly traded vehicles, such as REITs, are going to reflect the overall stock market’s performance. This is why investing directly with a company such as Sage Capital offers you a much less diluted and better hedge.