Real Estate offers a high value, favorable risk/reward profile, helping mitigate the risk in your overall asset portfolio. If used properly, real estate provides the investor with long term growth and income potential, says investopedia.com.
It is important to note that real estate is counted as part of a decedent’s estate, and is often the largest asset to be considered for estate tax purposes. While most Americans will fall under the 5/10 million dollar federal threshold, fifteen states have their own estate tax. Six states also have an inheritance tax, according to the Tax Foundation. Maryland and New Jersey have both. For middle income residents of those states, real estate will be the single asset which puts them over their state's tax threshold.