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Real Estate Investment

5 reasons people invest in real estate

1. Income

Real Estate has traditionally offered investors a higher level of income compared to other asset classes

Chart showing average annual income, 2007-2017 Q2 US Real Estate over 5% growth, US investment Grade Bonds. almost 3% growth, US T-Bills, 2% growth, and US Equities  less than 1% growth.

2 Returns

Historically, an investment in real estate has offered enhanced return.

Chart showing Total Return Annual Growth, Proforma to 2028

3. Diversification

Real estate can provide portfolio diversification for enhanced market resilience

Chart showing US Real Estate Correlations 1997-2017 Q2

4. Volatility Management

Real estate has offered lower volatility than many other asset classes

Chart showing Asset Class Returns & Volatility, 1997-2017*

5. Favorable Tax Treatment

Returns are partially return of principal providing a higher tax equivalent yield*

8.41%

"Tax Equivalent Yield”

for a typical New York State-based investor

Two Charts, one showing Return by Tax Category, the second showing After-Tax Yield

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.

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