Real Estate Investment
5 reasons people invest in real estate
Real Estate has traditionally offered investors a higher level of income compared to other asset classes
Historically, an investment in real estate has offered enhanced return.
Real estate can provide portfolio diversification for enhanced market resilience
4. Volatility Management
Real estate has offered lower volatility than many other asset classes
5. Favorable Tax Treatment
Returns are partially return of principal providing a higher tax equivalent yield*
"Tax Equivalent Yield”
for a typical New York State-based investor
For purposes of our calculations of the "Tax Equivalent Yield", we include only the estimate of the currently taxable portion of its dividend. NCRE’s dividend is comprised of ordinary income (taxable) and return of capital (tax deferred). For income tax reporting via form 1099, real estate investments benefit from certain non-cash tax deductible expenses (i.e. depreciation). For 2019, NCRE’s dividend is estimated to be 38% taxable as ordinary income. Assuming a 40% applicable tax rate, this equates to a 8.4% Tax Equivalent Yield. This information is not tax advice and each investor's personal tax situation varies.