As the stock market continues it's volatility and trade wars with China spur fear and cautiousness in today's investment market what options do investors have? A few, not nearly as much as they would like. There has always been gold and precious metals, they have been used as a hedge against inflation for years. Gold can be hard to store and protect, and certainly can't be traced if stolen. There are bonds, in such a volatile political climate the 2-year bond had a better rate than the 30-year bond, so pricing which affects valuation is out of your control. What about cryptocurrency? Now there is an option, it has shown great returns, as it fuels businesses and illicit enterprise that can't utilize the banking system. The future is on the debate, especially if the US legalized the cannabis industry to the point that federal banking was allowed. Cryptocurrency is also not backed by the gold standard commonly accepted in world currency exchanges.
So what is your safe haven for investment in 2019? Clearly real estate. The current tax laws that would run at least until January 2021 (if the Republicans lost the white house) are favorable to investment and capital gains. The 1031 exchange is still also a great option. Real estate has historically been an appreciating asset with tax benefits. Yes, the real estate market can be a little volatile at times, but on a 10-year hold has proven to be a winner.
1031 exchanges can be used to buy your dream retirement condo on the beach as long as it is rented out as an investment in the first few years. So real estate is not only investing in can be retirement planning as well. At AZ Home Seekers we would love to help you with your investment and retirement strategies.