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What You Should Know About Real Estate Investments

by eBridge author

Your home represents a large portion of your overall wealth, but it might not be your only or best investment. However, it can still play an important role in your overall portfolio. Real estate investments beyond your primary residence usually have different implications in terms of taxes and investments, as well.

Real estate investments have low correlations to other investments, like stocks and bonds. That lack of correlation could signify stability in your portfolio.

From a tax perspective, real estate investments are hugely beneficial. But be sure you’re not overdoing it on real estate. According to many experts, real estate should make up just 5 to 10 percent of your portfolio.