Every investor faces volatility. However, real estate can have a differentiated investment strategy that helps protect your portfolio from volatility.
Because of their nature, real estate investments have longer holding terms of at least three years on average. Real estate values fluctuate during economic cycles, but always hold an upward trend over time. The probability of obtaining a higher return increases when we put time on our side.
The raise in interest rates may affect the volume of loans for real estate, because it implies greater debt repayments and reduces properties’ cash flow. However, the steady growth in rental rates in many markets may offset the impact of interest rates rises in cash flows coming from multifamily assets. To learn more, click here.