Articles

WASHINGTON, D.C. -- Stocks have had a strong 2019, with the major U.S. stock indices establishing or nearing record highs in April and early May. Still, more Americans continue to believe real estate (35%) is a superior long-term investment to stocks (27%) or other investment options.

Real estate is a cyclical business. Markets crash. Deals sour. But hard landings are rare for a savvy property mogul, thanks to the U.S. tax code. Take Harry Macklowe, a New York City developer. Macklowe, 81, hasn’t paid income tax since the 1980s, according to a court opinion in his divorce proceedings issued in December.

As Americans see lower net worth and higher student debt levels, renting will continue to be a preferred choice for many. A major and unprecedented structural shift has occurred in the real estate market due to a variety of demographic and socioeconomic factors.

Think about the characteristics that make a strong portfolio: diverse, cost-efficient, tax-efficient, risk-managed. These qualities should be true of every portfolio, no matter the size or an individual’s risk profile. The clients we meet with all want a portfolio that checks these boxes, but doing so is easier said than done.