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Why Diversify in Real Estate?
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1. |
To reduce the overall risk of the portfolio by combining asset
classes that respond differently to expected and unexpected
events, |
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2. |
To achieve absolute returns well above the risk-free rate, |
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3. |
To hedge against unexpected inflation or deflation, |
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4. |
To constitute a part of a portfolio that is a reasonable
reflection of the overall investment universe (an indexed or
market-neutral portfolio), |
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5. |
To deliver strong cash flows to the portfolio, |
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6. |
To lock in gains from booming stock markets prior to the
anticipated world wide slow down |
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