There’s a good reason why savvy investors diversify and always include real estate in their portfolios — it’s a proven way to increase returns. The most risky propositions, as any financial adviser worth his or her salt will tell you, are short-term investments.
These can be gold, silver, and other precious metals, corn, wheat, oranges, and other commodities. They can also be things like penny stocks and other “turn and burn” short term investment vehicles. Regardless of the actual “investment”, it’s the length of time which is the biggest gamble.
That’s why the majority of investment gurus recommend going with mutual funds, bonds, and certificates of deposit, along with real property. The reason being is while the return is slow and in most cases, small, it’s a steady, dependable one.
Bad Investment Strategies Prove Costly
It’s not only chasing the big return that leads to bad decisions, it’s the belief or self-imposed blindfold, that “playing” the market, whatever the commodity or investment is at the time, will pay off big time in short order. Nothing can be further from the truth.
When a person tries to game the system, the system wins because it not only sets the rules, the world of investing is unpredictable. Back in the late 1900s, it was tech companies, which eventually lead to the bursting bubble of the new millennium.
There’s not only the monetary loss, there’s the emotional and physical toll it takes to wrangle through to the next payoff, which might or might not be enough to cover the losses.
This is why real estate is one of the best investment vehicles–it’s inherently valuable, and, it’s something that everyone actually needs.
Investing in Resort Properties for Good Appreciation
Looking at markets like Puerto Vallarta and Key West, there are many people who have successfully taken the initiative, and invested in resort properties. These properties produce a great return for several reasons, so let’s look at the reasons these investments are so lucrative:
- Real property is real and always will be real, really. Unlike precious metals, other commodities and even stocks, most of the “value” is only on paper. Resort properties physically exist and, they consistently bring in money.
- Resort properties are a known quantity. One of the banes of investing is trying to gauge past performance to determine future returns. Resort properties have a steady record to go on, and because they are located in tourist laden communities, will continue to appreciate in value.