How to Diversify Your Portfolio if You Invest in Real Estate

Real estate investment has long been more popular than it sometimes gets credit for. In recent years though it’s become particularly trendy. Just this year in fact, a study indicated that Americans now prefer investing in real estate to buying and selling stocks. That has not always been the case, and it speaks to the state of the market.

With that said, real estate can also be a challenging environment! While there are some areas in which housing prices tend to rise consistently, there are others that are more volatile. To that point, our guide to investing in real estate specifically pointed out that the Miami property market can be a little bit of a roller coaster — as can those of Manhattan and a few other major urban areas.

This is all well and good for those who figure out how to read trends, time their investments, and remain patient enough to profit. At the same time however, a volatile market is excellent incentive to diversify. What we mean specifically is that if you are investing in real estate in a more up-and-down area it’s also a good idea to spread out some of your capital in other markets, so that you don’t risk losing too much on a downturn. The last thing you want is to have all of your investment funds tied up in Miami real estate during a downward trend.

Keeping this in mind, we have a few simple but strategic diversification options specifically for those who invest in real estate.


If you want to diversify but you’re primarily interested in sticking with real estate, investing via REITs is an option worth pursuing. If you’re not familiar with the term, REIT stands for “Real Estate Investment Trust.” It is basically a fund filled with small stakes in different real estate assets that you can buy and sell almost like a stock market asset. One perk of this option is that it is inherently diversified within the real estate sector, with different assets in any given fund representing independent potential. Another upside is that an REIT is simple to trade, whereas trying something like stock trading as a means of diversification involves a lot of effort.

Gold ETFs

If you’re interested in diversifying beyond real estate entirely, the gold market can make for a suitable alternative specially because of its association with stability. While it’s a total misconception that gold is always going up, the asset does have a history of moving relatively calmly, trending up in the long term, and withstanding downturns in other markets. If this all sounds appealing for diversification, gold ETFs specifically make for good options essentially for the same reasons we highlighted REITs. First, it’s an “exchange-traded fund,” meaning it bundles gold-related assets into a single chunk such that it’s inherently diversified within its space. Second, because it exists as a single bundle, it is similarly simple to trade.

Mutual or Index Funds

Our final suggestion is to explore mutual and index funds, which basically take the convenience aspect of REITs and gold ETFs but apply it to stock markets. A mutual fund is a bundle of stocks that are managed by a professional (or group of professionals). An index fund is more like a stock market REIT, in that it basically automatically tracks the values of its bundled assets. In either case though, you have the ability to buy in and share in the profits or losses without having to manage trading decisions along the way. Once again, it’s a means of diversifying with ease and without saddling yourself with a busy day-trading responsibility.

You have many opportunities beyond these to diversify your portfolio, even if your primary focus remains on real estate. But these represent some simple and logical options worth looking into.

South Beach Miami Homes

Are you thinking about moving to the Miami area? While you have a number of areas from which you can choose for your new home or for a vacation home, one of the locales you will want to consider heavily is South Beach. This is easily one of the best locations, and you may want to start looking at the properties here for a range of different reasons.

Many Types of Properties

When you start to look at the options for South Beach, you will discover that you have plenty of different options. There are plenty of large and impressive towers in the area that are right on the beach and that offer condos and penthouses. These are very popular and for good reason. It is possible to find smaller units with just one or two bedrooms, as well as much larger units.

The different condominium towers also have a range of different features, including private beaches, onsite eateries, gyms, theaters, and much more. You can find a tower and a unit that matches the needs of you and your family. They tend to have great locations, as well, so you can get to all the other areas that you need to visit.

Of course, the towers are just one of the many options. You can find some incredible boutique buildings, too. These tend to be smaller, but they have some impressive features. One of these options might suit you better.

However, if you want something a bit larger than a condo, you can find that as well. Different sized single-family homes are available. Some of these are even on some of the manmade islands in the area, such as Palm Island and Hibiscus Island. Some of the homes are right on the water, too, which is nice if you have a boat, or if you are considering getting a boat. You can find just what you need.

You are never at a loss for options when it comes to finding great property in the area, so make a list of the things you would like from a home and then start looking.

A Wonderful Location

South Beach also happens to be a great location. The South Beach homes tend to be just a short distance from just about anything that you might want to see or do. You are only a few minutes from the water and the beaches, as well as places such as Aventura and Bal Harbour Shops. There are plenty of places to enjoy some nice meals or to have a drink. You are also only a short distance from all of the interesting things the Miami area offers, such as the zoo, the aquarium, museums, and theaters.

If you want to live in one of the most vibrant and culturally diverse places in the United States, you will want to make sure you start looking at some of the South Beach homes available. There is something for everyone here.

Luxury Amenities Growing in Sunny Isles Beach

Sunny Isles Condos

In the past, Sunny Isles Beach was a good vacation destination. It was a strip of beach filled with bright and colorful motels and families coming from all around the country to enjoy the beach and the ocean. As time wore on though, the motels fell out of use. People still loved the beach, but they wanted something new. Architects and builders saw the potential in the area and they helped to create the Sunny Isles Beach that we know and love today.

As the building boom started, more and more saw Sunny Isles Beach as the perfect area to start building. This was especially true after Miami Beach started to get crowded. Once the building started in Sunny Isles Beach, the price per square foot started to rise. In fact, over the course of the last four years or so, it has risen by about 55% and it’s still going strong.

Today, it is a place for the wealthy, for those who are making more than $200,000 a year and who like the idea of living in true luxury. When you start to look at the various options available, you will find that the buildings today have more amenities than ever before, and they are starting to become just as important as the residence spaces.

More Luxury Amenities for You

Many of the condo complexes that have been built and that have been remodeled in recent years have put much more of an emphasis on the idea of luxury amenities. Turnberry Ocean Club residences is a good example. They removed residences from floors 30 through 32 and provides amenities that encompass several levels and more than 72,000 square feet. The Sky Club includes an infinity edge swimming pool, spas, fitness centers indoors and outdoors, treatment rooms, a lounge, and even a treatment room for the pets.

Some of the other features added to buildings in the Sunny Isles Beach area include game rooms, playrooms, stock trading lounges, board rooms, and meeting rooms. Residents of the aforementioned building will also have access to the Turnberry Isle Resort and Golf Club, which has restaurants, a marina, golf facilities, tennis facilities, and more.

Porsche Design Tower is adding more space for amenities as well. They are adding a restaurant, a bar and lounge, a fitness room, ballroom, and more. Armani/Casa and plenty of other buildings in the area are putting a greater emphasis on the luxury amenities as well.

Why Is Luxury So Important?

When people are buying properties in Sunny Isles Beach, they are looking for more than just a place to call home. While they certainly want a nice place to live with plenty of features in the unit, they also want a building that’s truly special. This means they need to have the right luxury amenities. Why would they choose a building that doesn’t have these features when they could live in a building that can cater to their every desire? You will start to see more of these luxury features added, even if it means including fewer residences in the building.