As a consulting firm that guides family offices and other financial institutions around the world, some of the questions we often get are related to diversifying portfolios and the value of investing in real estate. This blog post touches a little more on that.
The questions that come up are mainly around the want and really the need for diversification – not putting all of your eggs in one basket – and tapping into real estate is not only a safe bet (if done right) but the inclusion of non-correlated tangible real estate assets can also create a more predictable/stable portfolio over the long term.
Below are some of the most common questions we get:
Do Family Offices Invest in Real Estate?
From what we’ve experienced and what many studies show, a majority of family offices invest in real estate because it can be more favorable to own the buildings/locations your businesses operate out of versus simply renting office space. Family offices also invest in residential real estate, which we covered in a previous blog.
Are Real Estate Investments Profitable for Family Offices?
Real estate investments can be profitable for family offices, financial institutions and businesses of all types, though you have to play the cards right. And there’s a reason why everyone knows McDonald’s yet most people don’t know they’re one of the biggest holders of real estate in the world.
Should My Family Office Invest in Real Estate?
Deciding to invest in real estate versus all of the other opportunities on the table can be a tough decision, though based on your goals for both the immediate and long-term, you need to take a step back and ask yourself if investing in real estate is right for your family office. We can help you with that.
If you are looking for more information on ways to accelerate your family office, interested in learning more about our proprietary strategies or simply want to say hello: Let’s Connect.