Low risk investment – real estate returns are based on relatively reliable cash flows from tangible assets rather than on price appreciation subject to the whims of market psychology.
Attractive long run returns: unlevered returns averaged 12% over the last 20 years
A natural inflation hedge: an inflation increase of 1% raises returns by 2%
Tax sheltered cash returns for retirement income: depreciation deductions
Indefinite deferral of capital gains
Passive tax losses reduce taxes on other passive income
Low correlation with other asset classes provides opportunity to reduce portfolio risk
Using Financial Analysis in Making Investment Decisions
