Why do rich people invest in real estate? + MORE Apr 8th

Answer from Romana King, senior editor and real estate specialist at MoneySense: Over half a decade ago, financial planners and trusted portfolio advisors started to look for stable, steady returns that could actually beat inflation. The reason? Bonds yields were weak and the equity market was volatile. Their clients wanted stable returns that didn’t cap out at 2% per year. That’s when real estate started to flourish as a leading investment choice among high-net-worth (HNW) investors.
While decent yields were certainly an attraction, so was the ability to use leverage to an investor’s advantage. But just because HNW investors are still shopping for real estate investments, doesn’t mean Joe or Jane regular investor should. Truth be told, HNW investors aren’t always looking for a capital gain on their investment—which is the increase in sale price that usually provides the bulk of a regular Joe and Jane’s investment in a house or condo…